Exxon mulls future in Venezuela

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US oil giant Exxon Mobil is considering its future in Venezuela as the country's president drives through nationalisation plans.

Exxon has said it will comply with a decree by President Hugo Chavez to hand over its multi-billion dollar Orinoco reserve operations by 1 May.

But the world's biggest oil company has yet to signal whether it will maintain a minority interest in the project.

Exxon is currently in talks with the government over the state takeover.

Negotiating terms

Mr Chavez has pledged to nationalise key Venezuelan companies as part of plans to transform the country into a full socialist state.

He has said the government is prepared to negotiate terms should Exxon wish to continue its involvement in the Cerro Negro crude upgrading project, in which British oil giant BP also has a stake.

Venezuelan media reports had suggested that Exxon was planning to retain an interest in the project once it comes under state control.

But a spokesman for the firm said it had made no such decision yet.

Mr Chavez, who last month threatened to nationalise privately owned supermarkets that sell meat above government-set prices, has announced plans to nationalise four other major oil projects in the Orinoco reserve.

The projects, which involve leading global oil firms including ConocoPhillips and Statoil, have a combined value of about $30bn (£15.5bn).