study this dispute and you will know why exxon is drilling for oil in Guyana. the original ruling was based on a ‘dispute’ between Exxon and the Bolivar republic over 1.5 billion barrels of heavy crude at operadora cerro negro, orinocco delta. this is circa 2007 when hugo chavez decided to nationalise his counttys resources. exxon ‘won’ 1.4 billion but was actually asking for 10 billion
Two major ExxonMobil-controlled projects were impacted in Venezuela’s Cerro Negro and La Ceiba, with the government compensating the company by paying the book value of its assets. ExxonMobil protested, arguing the government should have compensated the company for the market value of its assets, which was estimated to be significantly higher.
Of the 22 companies with nationalized assets only two opted for legal action against Venezuela – ConocoPhillips and ExxonMobil
Caracas, March 10 (Prensa Latina) Venezuelan authorities welcomed the revocation of a decision taken by the International Center for Settlement of Investment Disputes (ICSID), which had ordered Venezuela to make a multi-million dollar payment to Exxon Mobil.
The new verdict, adopted by ICSID and upheld by the Ministry of Petroleum reversed the 2014 decision, forcing Venezuela to pay US$ 1.4 billion to ExxonMobil, as a result of the nationalization industry process promoted by the Bolivarian government.
In a statement, the Ministry of Petroleum highlights the decision was taken in response to a request from Caracas regarding the ExxonMobil participation in the ‘Cerro Negro’ Project.
This step by ICSID, -the document stresses-, acknowledges the legal attachment of the decision issued by the appropriate Venezuelan authorities on the legal nature of ExxonMobil participation in the aforementioned Project.
‘The Bolivarian Republic of Venezuela, which has the world’s largest reserves of over 300 billion crude oil barrels, is considered as an open-door country to international investment’, it adds.
That is evident -it continues- by the presence of 49 international oil companies from Russia, China, United States, France, United Kingdom, Italy, Spain, India, among 15 other nations, operating in our country under VenezuelaÂ´s laws and Constitution.
Venezuela also reaffirms its pledge ‘to abide by and fully meet with this decision, which represents an incontrovertible judicial triumph in defense of our country’s sovereign and inalienable rights over our energy resources.’