CARACAS, Venezuela (Feb. 10) - President Hugo Chavez on Sunday threatened to
cut off oil sales to the United States in an "economic war" if Exxon Mobil
Corp. wins court judgments to seize billions of dollars in Venezuelan assets.
Exxon Mobil has gone after the assets of state oil company Petroleos de
Venezuela SA in U.S., British and Dutch courts as it challenges the
nationalization of a multibillion dollar oil project by Chavez's government.
A British court has issued an injunction "freezing" as much as $12 billion
in assets.
"If you end up freezing (Venezuelan assets) and it harms us, we're going to
harm you," Chavez said during his weekly radio and television program,
"Hello, President." "Do you know how? We aren't going to send oil to the United
States. Take note, Mr. Bush, Mr. Danger."
Chavez has repeatedly threatened to cut off oil shipments to the United
States, which is Venezuela's No. 1 client, if Washington tries to oust him.
Chavez's warnings on Sunday appeared to extend that threat to attempts by oil
companies to challenge his government's nationalization drive through lawsuits.
"I speak to the U.S. empire, because that's the master: continue and you
will see that we won't sent one drop of oil to the empire of the United States,"
Chavez said Sunday.
"The outlaws of Exxon Mobil will never again rob us," Chavez said, accusing
the Irving, Texas-based oil company of acting in concert with Washington.
A U.S. Embassy spokeswoman did not immediately return a call seeking
comment.
Venezuelan Oil Minister Rafael Ramirez has argued that court orders won by
Exxon Mobil have "no effect" on the state oil company PDVSA and are merely
"transitory measures" while Venezuela presents its case in courts in New York
and London.
Exxon Mobil is also taking its claims to international arbitration,
disputing the terms it was granted under Chavez's nationalization last year of four
heavy oil projects in the Orinoco River basin, one of the world's richest oil
deposits.
Other major oil companies including U.S.-based Chevron Corp., France's
Total, Britain's BP PLC, and Norway's StatoilHydro ASA have negotiated deals with
Venezuela to continue on as minority partners in the Orinoco oil project.
ConocoPhillips and Exxon Mobil, however, balked at the tougher terms and
have been in compensation talks with PDVSA.
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