In June, Chavez forced several U.S. oil companies that had invested billions in the so-called Orinoco Belt heavy oil field to cede operating control and majority ownership to PDVSA as a condition of staying in Venezuela. Chevron Corp. agreed, but Exxon Mobil and ConocoPhillips declined and abandoned operations in the country.
Although it wrote off the $4.5-billion value of its Venezuelan projects, ConocoPhillips continues to "amicably" negotiate with the Chavez government for a settlement, Venezuelan Energy Minister Rafael Ramirez said last week. Exxon Mobil's actions, on the other hand, were tantamount to "judicial terrorism," he said.
It is difficult to glean a clear picture of PDVSA's finances because it discloses limited information to the public. However, the company seems to have the wherewithal to stay current on debts totaling about $16 billion, of which $2.1 billion is due in 2008, said Standard & Poor's sovereign analyst Richard Francis.
"Exxon Mobil is going to court not because it fears PDVSA can't pay, but because it fears it won't pay," Francis said.
But others Monday painted a darker picture of PDVSA's financial condition. Guerra said the company was paying Total of France in oil for the value of its nationalized field in the Orinoco region "because it doesn't have any cash."
"PDVSA is in a very deep crisis, both in terms of its management and its oil production, which has declined for 10 quarters in a row," Guerra said. "The Exxon Mobil court action is damaging because it affects the credibility of PDVSA."
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chris.kraul@latimes.com
