Playing the waiting game: PDVSA, ExxonMobil still at odds

Caracas Daily Journal (Jeremy Morgan): While both sides await a London judge to rule on the case between the state oil corporation, Petróleos de Venezuela (PDVSA), and ExxonMobil, speculation centers on the likely outcome of the high-profile case.

Reports from London say the expectation is that Judge Paul Walker will deliver his ruling towards the end of this week, and that it will be based on whether British courts have jurisdiction over the case.

At issue is an injunction sought by ExxonMobil, and granted by another British court, putting a stay on $12 billion of PDVSA assets, and on a worldwide basis. Venezuela insists its British assets aren't worth more than $1 billion.The corporation claims its subsidiary, PDV UK, closed down its London office years ago. From then on, its British-based operations consisted solely of stakes in refineries at Dundee in Scotland and Eastham in England.

In the meantime, there's speculation about whether – unlikely as it may seem from the verbal warfare that's going on – that the two sides could yet reach an out-of-court settlement.

Attention focuses on a refinery at Chalmette in Louisiana, in which PDVSA and ExxonMobil are 50:50 partners.PDVSA formally renounced its commercial dealings with ExxonMobil on February 12, including crude deliveries to Chalmette.

It's suggested PDVSA could hand over its 50 percent in the refinery in exchange for ExxonMobil halting its claim for compensation in the Orinoco Basin.