ConocoPhillips in ‘cordial’ talks with Caracas

19 July 2007 20:47  [Source: ICIS news]

WASHINGTON (ICIS news)--ConocoPhillips’ chief executive said on Thursday the firm is in cordial discussions with Venezuelan officials concerning compensation for the company’s energy assets, seized by the Caracas government last month.

 

James Mulva, chairman, president and chief executive of ConocoPhillips, said compensation talks with the Caracas government “are likely to continue for some months, but I expect an amicable resolution”.

 

Speaking to a business luncheon, Mulva said that the trend of resource nationalisation - most recently illustrated when Venezuela nationalised the in-country assets of ConocoPhillips and ExxonMobil three weeks ago - presents difficult challenges to independent, publicly held companies.

 

“Each producing country must decide how to best maximise its resources, and each country is different in its approach,” Mulva said.

 

He did not indicate any dollar figure that ConocoPhillips is anticipating for compensation, but the company has earlier valued its Venezuelan oil interests at $4.5bn (€3.24bn).

 

Mulva did not rule out seeking third-party intervention in the negotiations if they prove difficult. 

 

“I think going to arbitration would be a last resort,” Mulva said.

 

($1 = €0.72)

By: Joe Kamalick
+1 713 525 2653

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