This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-29561345
The article has changed 4 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
Exxon owed $1.6bn by Venezuela for 2007 nationalisation | Exxon owed $1.6bn by Venezuela for 2007 nationalisation |
(35 minutes later) | |
Venezuela must pay oil giant Exxon Mobil $1.6bn (£1bn) in compensation for expropriated assets, an international arbitration tribunal has decided. | |
Exxon had claimed up to $16.6bn in compensation for the nationalisation of its Cerro Negro Project and other losses in 2007. | |
Venezuela may choose to appeal against the decision. | Venezuela may choose to appeal against the decision. |
The ruling was made by the World Bank's International Centre for Settlement of Investment Disputes (ICSID). | The ruling was made by the World Bank's International Centre for Settlement of Investment Disputes (ICSID). |
It is a blow to Venezuela which is struggling with a shortage of foreign currency, inflation and a stagnating economy. | |
'Legal right' | |
Exxon Mobil said in a statement: "The decision confirms that the Venezuelan government failed to provide fair compensation for expropriated assets." | Exxon Mobil said in a statement: "The decision confirms that the Venezuelan government failed to provide fair compensation for expropriated assets." |
The company added that it "accepts Venezuela's legal right to expropriate the assets of our affiliates subject to compensation at fair market value". | The company added that it "accepts Venezuela's legal right to expropriate the assets of our affiliates subject to compensation at fair market value". |
A previous decision in 2012 ruled that PDVSA, the state oil company, should pay Exxon $908m. | A previous decision in 2012 ruled that PDVSA, the state oil company, should pay Exxon $908m. |
Venezuela has since paid a portion of that award, which will be taken into account in calculating the balance that Venezuela owes. | Venezuela has since paid a portion of that award, which will be taken into account in calculating the balance that Venezuela owes. |