Venezuela asks UK court to lift Exxon asset freeze

Legal World

Venezuela's state oil company has asked a British court to lift a $12 billion freeze granted to U.S. oil major Exxon Mobil pending arbitration over the seizure of oil fields in the South American country.

Lawyers for PDVSA argued on Thursday that the court had no right to impose the freeze because the assets under dispute, the parties and the arbitration that Exxon has applied for were not in or connected with Britain.

Leftist President Hugo Chavez told foreign oil companies last year to cede a majority stake in oil projects or leave the country. Most agreed and accepted bids for stakes in their projects from PDVSA that analysts said were below market value. Exxon opted to pull out rather than concede and has applied for international arbitration to win damages.
Pending the outcome, America's largest company convinced courts in Britain, the United States and the Netherlands to freeze Venezuelan assets to ensure funds for compensation.

Acting for PDVSA, lawyer Gordon Pollock told the court, "It is not the role or function of the English courts to offer worldwide freezing orders" to anyone who asked for them.

Pollock said the English court had stretched beyond its jurisdiction in this instance given such asset freezes were normally only awarded in cases involving "egregious fraud".

"This is not a fraud case ... it is a contractual dispute." In Caracas, Venezuela's Oil Minister Rafael Ramirez said Venezuela made three basic arguments against the ruling.
First, the asset freeze was outside the arbitration process, which PDVSA was following in good faith. Second, PDVSA is a state company and therefore should be immune from such freezes, he said.

Finally, he said such freezes were used against companies in financial difficulties, which was not the case for PDVSA -- a company industry analysts believe can easily pay Exxon compensation for its seized assets.

Related listings

  • EU Court Rules on in Vitro Dispute

    EU Court Rules on in Vitro Dispute

    Legal World 02/26/2008

    [##_1L|1000813288.gif|width="115" height="75" alt=""|_##]The European Court of Justice, clarifying an Austrian labor dispute, ruled against a Salzburg woman's claim that she had been entitled to labor protection when she was fired while pursuing in v...

  • Raul Castro named Cuba's new president

    Raul Castro named Cuba's new president

    Legal World 02/25/2008

    Cuba's parliament named Raul Castro president to replace his ailing brother Fidel, prompting a guarded response Monday from countries looking for signs of reform on the Communist-ruled island.After years in Fidel's charismatic shadow as Cuba's number...

  • Serbs Protesters Attack UN Police

    Serbs Protesters Attack UN Police

    Legal World 02/22/2008

    Serbs protesting Kosovo's independence for a fifth straight day Friday attacked U.N. police guarding a key bridge in northern Kosovo with stones, glass bottles and firecrackers on Friday.Serbia's prime minister appealed for calm as the European Union...

New Rochelle, New York Personal Injury Lawyers

If you or a loved one has been injured in an accident, contact Kommer, Bave & Ollman, LLP, in New Rochelle, New York, immediately. We can answer all your questions and work with you to determine if you have the grounds for a personal injury lawsuit. The attorneys at our firm are determined to resolve even the most difficult of cases. We will work closely with you to determine the best course of action to get your claim or case resolved in the most efficient way possible. We will fight for your right to compensation! No one should have to suffer a financial burden from the result of another person’s carelessness. The attorneys at Kommer, Bave & Ollman, LLP will aggressively fight to ensure that justice is served on your behalf.

Business News

New York & New Jersey Family Law Matters We represent our clients in all types of proceedings that include termination of parental rights. >> read