Venezuela to pay $250 mln in compensation to Exxon Mobil

Venezuela will pay Exxon Mobil $250 million and not $12 billion in compensation for assets nationalised in 2007, President Hugo Chavez said during his weekly TV show “Alo Presidente” (Hello President) on Sunday. He described as “absurdly overstated” the U.S. company’s initial requirements. An arbitration panel of the World Bank ruled that Venezuela’s state oil company PDVSA should compensate the U.S. firm $908 million. Chavez noted that “after several deductions” this sum reduces to $250 million. Last week Venezuela’s oil company said although the arbitration body ruled that PDVSA should compensate $908 million, debts owed by Exxon and $300 million frozen in PDVSA’s U.S. accounts during the court action should be deducted from this sum.