Lawyers for the Venezuela state-owned oil company PDVSA are back in court in London. They are trying to convince a judge there that the $12 billion that Exxon (NYSE: XOM) has seized through the courts in exchange for its assets that have been nationalized is excessive.

According to Reuters, "PDVSA lawyer Gordon Pollock said the amount frozen was excessive. He said a claim that PDVSA would try to hide its assets was not credible and the English court which awarded the freeze had exceeded its jurisdiction." PDVSA's argument is based partially on a theory that the calculation Exxon has used for reparations sets the face value of its property too high.

The legal challenge from Hugo Chavez's government has one significant flaw. His country has no right to take the Exxon assets in the first place. There would be no court hearing at all if Venezuela had not violated international law.

Several courts have agreed that the $12 billion in PDVSA overseas assets that Exxon has been able to seize is based on rational calculations. If the Venezuelan government does not want to pay fair value, then it should give the property back or reap the financial whirlwind.

Douglas A. McIntyre is an editor at 247wallst.com.

Venezuela disputes Exxon asset seizure originally appeared on BloggingStocks on Sat, 01 Mar 2008 14:40:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal reported that analysts are looking to assess the significance of a new accounting problem at American International Group Inc (NYSE: AIG) which includes "material weakness" the company's auditor found that relates to subprime exposure.
• China Mobile Limited (NYSE: CHL) is expected to announce its support today for Long Term Evolution, a wireless broadband standard gaining strong momentum as the next-generation wireless technology for providing super-fast web surfing on cellular phones, the Financial Times reported.

• According to the Associated Press, Petroleos de Venezuela SA said it has stopped selling crude oil to Exxon Mobil Corporation (NYSE: XOM). The decision, made "as an act of reciprocity" for Exxon's "judicial-economic harassment," will also include the suspension of commercial relations with the U.S. company.

• Reuters reported that The Walt Disney Company (NYSE: DIS) signed a deal to buy 20% of Net TV, a digital television company controlled by Spanish media company Vocento.

Newspaper wrap-up: PDVSA cuts Exxon Mobil off originally appeared on BloggingStocks on Wed, 13 Feb 2008 08:00:00 EST. Please see our terms for use of feeds.

You may file this under: It's about time.

I've been patiently waiting for something to be done regarding the seizure of Venezuelan oil infrastructure by communist dictator Hugo Chavez. It appears that time has come, with the help of Exxon Mobil Corp. (NYSE: XOM). As reported by Reuters, approximately $12 billion in Venezuelan assets have been frozen. It's just too bad that John F. Kennedy isn't still around. He'd have already parked an armada of gunboats a mile off the sunny shores of Venezuela. There's a limit to the amount of guff we should take from an out-of-control communist dictator.

Continue reading Exxon puts the smack-down on Hugo Chavez: Court freezes Venezuelan assets

Exxon puts the smack-down on Hugo Chavez: Court freezes Venezuelan assets originally appeared on BloggingStocks on Sat, 09 Feb 2008 12:40:00 EST. Please see our terms for use of feeds.