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Stop ExxonMobil’s theft from the
poor!
Support
Venezuela’s right to
sovereignty!
 
Sign-on
statement
Please show your support by clicking
http://venezuelasolidarity.org/?q=node/2397
  
United
States oil giant ExxonMobil Corporation has launched a
major attack on the Venezuelan people’s right to independence and
self-determination.
 
In January and February, ExxonMobil used the courts
in Britain, the
US and the
Netherlands to get injunctions that freeze up to $12
billion in assets of Venezuela’s state-owned oil company, Petróleos de
Venezuela (PDVSA), in those countries. The British injunction, granted on
January 24 without any prior notice to PDVSA, will be heard again on February
22. The US injunction was upheld by a February 13
ruling of the US Federal Court.
 
ExxonMobil’s economic thuggery is an attempt to
undermine and reverse the Venezuelan government’s decision last May to
nationalise ExxonMobil’s 41.7% stake in the Cerro Negro project in the
Orinoco oilfield. The nationalisation was part of the
revolutionary government’s efforts to recover
Venezuela’s sovereignty over its natural resources.
ExxonMobil rejected the Venezuelan government’s offer of compensation, instead
using the legal system in various First World countries to punish the country. In contrast,
France’s Total and
Norway’s Statoil have agreed to accept from
Venezuela close to $1 billion compensation for part
of their holdings in the oil project.
 
ExxonMobil is the world’s largest oil company, and
was a key “stakeholder” in the US’s bloody invasion and occupation of
Iraq. The corporation’s attack on
Venezuela is a continuation of its aggressive
response to any government daring to assert its nation’s right to own and
control their natural resources. More fundamentally, the attack also aims to
destabilise Venezuela and undermine the socialist revolution
being constructed by the Venezuelan people.
 
PDVSA accounts for some 90% of
Venezuela's foreign exchange and half of its
federal tax revenue, and it is the crucial source of funds for the Venezuelan
government's programs that provide free education and health care to the poor.
In 2006, the state-owned oil company spent $13.3 billion on such programs, up
from $6.9 billion in 2005 and more than double the $5.8 billion it invested in
new domestic gas and oil projects.

ExxonMobil’s actions have angered poor Venezuelans,
who have held protests around the country. As oil workers’ union leader Luis
Carvajal said: “This transnational has exploited our wealth, has exploited our
workers and violated our rights. All the workers in the Orinoco oil belt support the
nationalisation.”
 
Venezuela supplies about 10% of the
US’s oil. On February 14, PDVSA halted oil
supplies to ExxonMobil and the government is now considering suspending oil
supplies to the US. As
Venezuela's energy minister, Rafael Ramirez, has
emphasised, the interests of the Venezuelan nation are more important than any
corporation, and Venezuela will not back down from its policy of
full oil sovereignty.
 
In light of these events, we the
undersigned:
 
·       
Support the Venezuelan government’s efforts to defend
and extend the Venezuelan people’s common ownership and control over
Venezuela’s natural resources, and defend the
BolivarianRepublic of
Venezuela’s right to assert its social, political
and economic sovereignty.
 
·       
Condemn ExxonMobil’s economic blackmail against
Venezuela and call for it to immediately withdraw
its legal campaign against PDVSA.
 
·       
Reject as illegitimate and immoral the British, US
and Dutch courts’ order to freeze PDVSA’s assets. Only
Venezuela, through its own courts and in accordance
with its own Constitution, has the right to decide the ownership and control of
the resources in its territory. So-called “international arbitration” on
Venezuela’s resources via courts in the
First
World countries
is colonialism.
       
                               
·       
Stand in solidarity with the protest actions of Venezuela’s people, trade
unions and social organisations against ExxonMobil and the US government’s
economic and political thuggery, and commend the words of Venezuelan President
Hugo Chavez: “They will never rob us again, those bandits of
ExxonMobil”.
 
Please show your support by clicking
http://venezuelasolidarity.org/?q=node/2397
 
For information about protest
actions against ExxonMobile in your city, contact the Australia-Venezuela
Solidarity Network at info@venezuelasolidarity.org

Prominent British Figures Call on ExxonMobil to Respect Venezuelan Sovereignty

Over 50 prominent figures representing a wide section of British society have signed a statement raising concern over legal action taken by oil giant ExxonMobil to prevent the Venezuelan government from exercising its right to control its natural resources. They have urged ExxonMobil to work for "the amicable settlement" of its dispute with the Venezuelan state oil company PDVSA through international arbitration.

The statement is published as Venezuelan state oil company PDVSA goes to the High Court to appeal an English court's decision to freeze its assets in England and Wales.

The statement points out that "The action by ExxonMobil was in response to the policy of the Venezuelan government to take back majority control of their own oil resources. Unlike other international oil companies, where some 30 out of 32 contracts have been successfully renegotiated and amicable agreements and compensation terms reached with the Venezuelan government, ExxonMobil refused the terms offered."

The statement concludes "We further restate our support for Venezuela's national sovereignty, including the right to determine its own policy in relation to its oil and natural resources in favour of the people of that country, rather than in the interests of multinational companies."

Signatories to the letter included writer and film-maker John Pilger, veteran political activist Tony Benn, Bruce Kent, Vice President of CND, Ann Pettifor, founder of Jubilee 2000, Brian Wilson, Chair of the Scottish Venezuela Society, an MEP and many MPs from 5 parties, a number of leading writers, artists and academics and many senior national trade union leaders.

Colin Burgon MP, Chair of Labour Friends of Venezuela group of parliamentarians said: "Millions of Venezuelans are now benefiting from free healthcare and education thanks to the Chavez government's greater control over that country's oil resources. Government's must have the right to be able to put the interest of people ahead of company's profits".

UNISON Deputy General Secretary Keith Sonnet, added that, "This sends a clear message internationally, including to the Bush administration, that Venezuela's right to self-determination must be respected, rather than the wishes of multinational companies to make profits."

Gordon Hutchison, Secretary of the Venezuela Information Centre, said "There are many voices in Britain who strongly oppose ExxonMobil's attempts to undermine the right of Venezuela's democratically elected government to control its own resources."

The full text of the statement and full list of signatures is as follows:

STATEMENT RE EXONNMOBIL AND PDVSA

We note with deep concern that on 7 February an English court granted an injunction to US multinational oil company ExxonMobil freezing the assets of the Venezuelan oil company PDVSA in England and Wales. The order covered assets to the value of US$12 billion.

The Venezuelan Government was given no notice of the case and was not afforded any opportunity to be represented at the hearing.

This week PDVSA will appeal the decision in the High Court and seek to revoke the injunction.

The action by ExxonMobil was in response to the policy of the Venezuelan government to take back majority control of their own oil resources. Unlike other international oil companies, where some 30 out of 32 contracts have been successfully renegotiated and amicable agreements and compensation terms reached with the Venezuelan government, ExxonMobil refused the terms offered.

We believe that the action by ExxonMobil, and the ruling by the court, contravenes the right of the democratically elected government of Venezuela to exercise sovereignty over its natural resources. The nationalisation of Venezuela's state oil company, holder of some of the world's largest oil reserves, under the government of President Hugo Chavez has allowed Venezuela to tackle a range of social inequalities, by taking back the oil wealth and redistributing it to benefit the Venezuelan people.

We urge the amicable settlement of this dispute through arbitration under the auspices of the International Centre for Settlement of Investment Disputes, a body of the World Bank, as sought by the Venezuelan government in compliance with the terms of the contract signed between PDVSA and ExxonMobil in 1995.

We further restate our support for Venezuela's national sovereignty, including the right to determine its own policy in relation to its oil and natural resources in favour of the people of that country, rather than in the interests of multinational companies.

SIGNATURES

Diane Abbott M.P (Labour)

Tony Benn

John Pilger

Bruce Kent

Prunella Scales

Caroline Lucas MEP

Gordon Hutchison, Secretary, Venezuela Information Centre (VIC)

Brian Wilson, Chair, Scottish Venezuela Society

Ann Pettifor, Fellow, New Economics Foundation

Neal Lawson, Compass

Graeme Smith, General Secretary. STUC

Keith Sonnet, Deputy General Secretary, UNISON

Ken Loach

Colin Burgon M.P (Chair, Labour Friends of Venezuela)

Jon Cruddas M.P (Treasurer, Labour Friends of Venezuela)

Mike Hancock M.P (Liberal Democrat)

Adam Price M.P. (Plaid Cymru)

Angus MacNeil M.P. (Scottish National Party)

Richard Harvey

David Hillman

Jon Trickett M.P (Secretary, Labour Friends of Venezuela)

Jeremy Corbyn M.P

Victoria Brittain

Graham Goddard, Deputy General Secretary, UNITE

Billy Hayes, General Secretary CWU

Owen Tudor, Head of European Union and International Relations, TUC

Rodney Bickerstaffe

Sue Branford, Chair, War on Want

Richard Gott

Doug Nicholls, National Secretary CYWU/UNITE

Derek Wall, Green Party

Cllr. Salma Yaqoob

Hazel Marsh, University of East Anglia

Andy Bain, President TSSA

Maggie Bowden, General Secretary, Liberation

Ruqayyah Collector, Black Students Officer, NUS

Marie Daley, UCU National Executive Committee

Michael Derham, Northumbria University

Bill Greenshields, Vice-President NUT

Chris Kitchen, General Secretary NUM

Matt Wrack, General Secretary FBU

Dr Mandy Turner, University of Bradford

Dr Kaveh Moussavi, University of Oxford

Paul Laverty

Gerry Doherty, General Secretary TSSA

Baljeet Ghale, President NUT (personal capacity)

Joe Marino, General Secretary, BFAWU

Dr. Francisco Dominguez, University of Middlesex

Doreen Massey, Open University

Martin McIvor, Editor, Renewal

Gerry Morrissey, General Secreary, BECTU

Linda Newman, President UCU

Diana Raby, University of Liverpool

Mick Shaw, President, FBU

Notes to Editors: 1) In the past, ExxonMobil has received criticism from NGOs such as Greenpeace and Friends of the Earth for its poor record in terms of corporate and environmental responsibility. Examples can be found at www.exxonsecrets.org <http://www.exxonsecrets.org/> and www.foe.co.uk/resource/reports/exxons_climate_footprint.pdf <http://www.foe.co.uk/resource/reports/exxons_climate_footprint.pdf>

2) For more information or media comment from signatory's to the letter, please contact Gordon Hutchison, Secretary, Venezuela Information Centre on info@vicuk.org, 0207 272 2654 or 077 109 56332.

Venezuela: the spectre of Big Oil

"Never again will they rob us – the ExxonMobil bandits. They are imperial, American bandits, white-collared thieves. They turn governments corrupt, they oust governments. They supported the invasion of Iraq."[1] This was the response from Venezuelan president Hugo Chávez to the successful lawsuit by the world's biggest corporation (ExxonMobil), freezing $12 billion in assets of Venezuela's state-owned oil company, PDVSA – a serious escalation in Big Oil's long running dispute with Chávez and the movement he represents.

ExxonMobil isn't suing PDVSA because it needs the money. The world's largest publicly traded corporation recorded profits of $40.6-billion (U.S.) in 2007, up three per cent from 2006's record of $39.6-billion. "If Exxon were a country, its 2007 profit would exceed output of two-thirds of the world's nations. Its 2007 revenue of $404-billion (U.S.) would place it among the 30 largest countries, ahead of such middle powers as Sweden and Venezuela."[2]

ExxonMobil claims it is suing PDVSA because of a June 2007 deadline given by Chávez to Exxon and other Big Oil corporations operating in Venezuela, demanding they cede majority control in their heavy-crude upgrading projects in the country. ExxonMobil and ConocoPhillips filed arbitration requests with the International Center for Settlement of Investment Disputes, and ExxonMobil simultaneously took legal action in courts in the U.S. and Britain, which on February 7 agreed with their claim, and ordered the freeze of PDVSA assets.[3]

But there is much more at stake than a simple legal disagreement. First – many other Big Oil companies have agreed to Chávez' terms and not gone to court – among them, Chevron Corp., Norway's Statoil ASA, Britain's BP PLC and France's Total SA.[4] Second, Venezuela is not the only country to confront Big Oil and demand that old contracts be renegotiated. Here in Canada, Newfoundland's Danny Williams demanded and won an ownership share in the multi-billion-dollar Hebron offshore oil deal.[5] Even the Tories in Alberta are forcing Big Oil to pay higher royalties.[6] And in Russia, "both BP PLC and Royal Dutch Shell PLC have ceded control in big, lucrative Siberian projects to Russian gas monopoly OAO Gazprom."[7]

The truth is, ExxonMobil's ultimatum has more to do with politics than economics. Russia's ruler Vladimir Putin holds office because of his ties to the secret service, his crackdown on public debate, and his commitment to pushing Russia back into the world of Big Power politics. That world of corruption and repression is comforting and familiar to the owners of ExxonMobil. Chávez, by contrast, holds office because millions have again and again been willing to put their bodies on the line against multinational corporations and their local allies. That revolutionary movement is terrifying to ExxonMobil.

So – working with courts in the U.S. and Britain (the two biggest western imperialist powers) – ExxonMobil is testing the water, seeing just how strong the revolutionary movement in Venezuela is. This is especially critical, given the setback faced by Chávez in the recent constitutional referendum.

And we shouldn't doubt the capacity of multinational corporations to use a legal fig leaf to pursue their "right" to pull exorbitant profits out of the Global South. "BP won an arbitration case against Libya in the 1970s ... and chased tankers of Libyan crude around the world to seize them as payment." In 2006 and 2007, "Western companies that purchased debt for unpaid construction work in the Congo have tried to seize tankers of Congolese oil to satisfy arbitration awards."[8]

The ExxonMobil attacks have been met with defiance in Venezuela. PDVSA denies that any significant assets have been affected by the court action. "PDVSA is operating at 100 percent and is exporting oil all over the world," said Venezuelan Energy Minister Rafael Ramirez.[9] February 11, Chávez said that if ExxonMobil does succeed in freezing PDVSA assets, he would halt oil exports to the United States.[10] This is a threat the U.S. has to take seriously. As well as being the fourth largest exporter of oil to the U.S., if Venezuela succeeds in certifying an additional 200 billion barrels of oil reserves to the 100 billion already certified, it will officially have the most proved reserves of oil, in the world.[11]

With so much at stake, U.S. imperialism and its corporate allies are not at the moment in a position to launch a sequel to the failed coup of 2002. Venezuela's movement is too big, and Venezuela's oil is too important for that to happen – for now. But we know from the bitter history of Big Oil and the Global South that this is not the last confrontation between corporate and popular power in Venezuela.

© 2008 Paul Kellogg

References


[1] Cited in Saul Hudson, "Chávez warns he'll stop oil shipments to U.S.," The Globe and Mail, Feb. 11, 2008, p. B.3
[2] Shawn McCarthy, "Exxon profit hits $40.6-billion," The Globe and Mail, Feb. 2, 2008, p. B.7
[3] Peter Wilson, "Big Oil's Victory in Venezuela," BusinessWeek, Feb. 7, 2008, www.businessweek.com
[4] Brian Ellsworth, "Exxon, ConocoPhillips won't bow to Chávez," The Globe and Mail, June 26, 2007, p. B.12
[5] Colin Campbell, "How to win, in a fight with Big Oil," Maclean's, September 10, 2007, p. 62
[6] Guy Chazan, "Oil Sands Are Shifting in Alberta," Wall Street Journal, February 5, 2008, p. A8
[7] Russell Gold, "Big Oil looks for Plan B after Venezuela," The Globe and Mail, June 27, 2007, p. B.13
[8] Russell Gold, "Big Oil," p. B.13
[9] "Venezuela denies PDVSA asset freeze," www.chinaview.cn, February 9, 2008
[10] Simon Romero, "Chávez threatens to end oil exports to U.S.," International Herald Tribune, February 11, 2008, www.iht.com
[11] Steven Bodzin, "Exxon Gives Chávez Biggest Fight Over Nationalization," Bloomberg.com, February 13, 2008

Londoners Protest Exxon's Bid to Grab Venezuelan Resources

Solidarity campaigners rallied on Tuesday March 4th to defend Venezuela's oil resources from greedy transnational ExxonMobil at the Royal Courts of Justice in central London.

Scores of protesters waved placards and chanted slogans behind barriers decorated with the Venezuelan flag at the demonstration, which was organised by the Venezuela Information Centre (VIC). Venezuelan state oil company PDVSA is fighting a court order to freeze its assets in England and Wales at the behest of ExxonMobil.

The rapacious oil giant has waged a worldwide campaign against Venezuela since the nation's socialist government took a majority stake in its massive oil reserves last year in order to fund extensive social welfare and development programmes.

PDVSA successfully negotiated new contracts and compensation deals with 30 of the 32 transnationals extracting oil from Venezuela.

Venezuela has proposed arbitration of the row with ExxonMobil by the World Bank's International Centre for Settlement of Investment Disputes.

But the petroleum giant chose legal channels over diplomacy in seeking to maintain its grip on the South American nation's natural wealth.

A delegation of MPs and trade unionists led by Labour Friends of Venezuela chairman Colin Burgon and secretary Jon Cruddas presented a statement in support of PDVSA and the Venezuelan government to Venezuelan diplomat Felix Plasencia.

VIC secretary Gordon Hutchinson said: "This event indicates the strong feeling in many different sections of British society that ExxonMobil's hostile action must be opposed."

Protesters were puzzled as to why Exxon would attempt to seize the limited PDVSA assets in Britain. But UNISON national chairman Keith Sonnet pointed out: "Other companies have reached an amicable settlement. ExxonMobil have a political motivation in this. "It's disgraceful that PDVSA's assets are being frozen on behalf of a global corporation like ExxonMobil, trying to prevent Venezuela using its resources for the benefit of its people."

Plaid Cymru MP Adam Price said: "This is a very provocative move by ExxonMobil. It strikes me as ironic that the neocons who claimed they were bringing democracy to the Middle East are undermining it in Latin America. The common thread here is oil."

Labour MP Jeremy Corbyn stressed: "Venezuela has an elected government and a chosen path of public ownership of its oil and extractive industries. It's not up to the British courts to take money from the Venezuelan people and hand it to ExxonMobil."

TSSA president Andy Bain said: "This is an example of one of the world's largest transnational companies holding to ransom a democratically elected government acting on the wishes of its people."

Green Party international co-ordinator Dr Joseph Healy added: "I'm here to see that Venezuela's resources remain in the hands of the Venezuelan people and are not exploited by international corporations."