Exxon Mobil like several other foreign energy companies had signed joint production agreement with Venezuela"s state-owned oil company Petroleos de Venezuela SA or PDVSA. But the joint ventures fell off with president Hugo Chavez strengthening government control over the country"s resources.

Joint venture participants had either to accept reduced roles and profits or walk off. Exxon Mobil and ConocoPhillips dropped out of the projects, but moved courts in the Caribbeans, US, the UK and the Netherlands.

PDVSA was expected to shift assets to other Latin American countries and China in order to keep them out of reach of an international arbitration commission. Exxon Mobil has a sizeable investment in the projects and shifting of assets would deny it the opportunity to pursue the case.

The UK injunction, granted January 24, is to be heard next on February 22. PDVSA cannot remove assets in England or Wales up to a value of $12 billion until the next hearing and can neither sell nor reduce the value of any assets within or outside these countries up to the same value.

Courts in the Netherlands and the Netherlands Antilles have issued attachment orders favouring Exxon Mobil, freezing up to $12 billion of PDVSA assets in each jurisdiction.

In the US, a judge in Manhattan federal court froze $315 million in PDVSA assets. The Manhattan court will hand down its ruling in court hearings to be held on February 13

PDVSA president and Venezuelan energy and oil minister Rafael Ramirez vowed to fight Exxon"s ``bluff"" to freeze the assets and guaranteed the company"s operations and cash flow won"t be affected.

Speaking at a press conference in Caracas, Ramirez, said the only asset that has been frozen is a New York account with about $300 million.

``This is pure judicial terrorism,"" Ramirez said. ``If they think we will backtrack on our nationalisation policies after this, well, gentlemen from Exxon Mobil, you are wrong again.""

Exxon Mobil"s 41.7 per cent stake in a heavy oil project in Venezuela"s Orinoco Belt region had a net-book value of about $750 million, according to a September filing with the US Securities and Exchange Commission.

Irving, Texas-based Exxon Mobil is the world"s largest oil company and was the most-profitable US corporation last year.

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