Exxon, Conoco Pull Out of Venezuela

Firms reject Chavez demand for 60% stake in future projects
By Dustin Lushing,  Newser Staff
Posted Jun 26, 2007 8:04 AM CDT
Exxon, Conoco Pull Out of Venezuela
A pedestrian walks in front of a street banner depicting Venezuela's President Hugo Chavez and 'Guaky", the Copa America's pet, in Maracaibo, Venezuela, Monday, June 25, 2007. Venezuela is hosting the June 26-July 15 tournament, which includes the United States and Mexico as guests, for the first time...   (Associated Press)

ExxonMobil and ConocoPhillips are bolting from lucrative operations in Venezuela in the wake of Hugo Chavez's demand that his state-run oil company receive at least a 60% share in projects. Talks over compensation fell apart hours before today's deadline to determine the future of four projects that produce as much as a quarter of the country's daily output.

Chavez and Venezuela's state-run firm took operational control of plants in the region, including those built by Conoco and Exxon, on May 1 as part of the president's nationalization plan to create what he calls "21st century socialism.'' The projects in question represent about 4% of Conoco's 2006 production, Reuters reports, and 1% of Exxon's. (More ExxonMobil stories.)

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