[StBernard] Pdvsa cannot sell stake in Chalmette without Exxon's authorization

Westley Annis westley at da-parish.com
Wed Feb 20 21:08:08 EST 2008

Pdvsa cannot sell stake in Chalmette without Exxon's authorization

Venezuelan state-run oil firm Pdvsa needs Exxon Mobil's authorization to
sell its stake in US-based Chalmette refinery, owned by Pdvsa and the US oil
major, Vice-Minister of Energy Bernard Mommer Wednesday told reporters.

Some analysts had speculated Venezuela was arranging a deal to give Exxon 50
percent of its Chalmette assets as compensation for Exxon's Cerro Negro
assets. Venezuela nationalized the project last year, leading Exxon to open
arbitration proceedings against Pdvsa.

"We cannot sell (our Chalmette stake) without the signature of Exxon, and
they cannot sell theirs without our signature," Mommer said.

He added, "Exxon has the guarantee that 50 percent of Chalmette belongs to
Pdvsa... and that 50 percent is worth more than what they had in the (Cerro
Negro crude project)," reported Reuters.

Energy Minister Rafael Ramirez said on Tuesday the company could sell its
stake in Chalmette. He said Pdvsa's Chalmette stake would be more than
enough to compensate Exxon for assets in the Cerro Negro heavy crude

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