Texas-based Exxon has been resisting tax hikes and contract changes amid a so-called "renationalization" of Venezuela's oil industry. Amid differences with President Hugo Chavez's nationalist oil policies, Venezuela has removed Exxon Mobil Corp. from the multibillion dollar Jose Petrochemical Project. Exxon Mobil has been informed that Pequiven would be unable to complete Jose Petrochemical Project feasibility study under the terms and conditions agreed in August 2004. As per the agreement, Exxon had plans to team up with Pequiven, the petrochemicals division of state oil firm Petroleos de Venezuela SA, to spend a combined US$3 billion to produce 1 million metric tpa of ethylene and derivatives.
In 2004, Exxon was the only company to threaten international arbitration against a royalty hike on extra-heavy oil production in the Orinoco river basin, whereas oil companies including ConocoPhillips, Total SA, Chevron Corp. and Statoil, agreed to the new terms. Exxon also solely resisted contract changes for 32 privately run oil fields that will now be dominated by PDVSA under new joint-venture companies, selling its stake in one of the fields to avoid accepting the unfavorable terms.
15-Feb-06 
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