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Eni seeks 654 mln eur compensation from Venezuela in Dacion case

AFX
MILAN
Petroleumworld.com 09 27 06

Eni SpA is seeking at least 654 mln eur in compensation from Venezuela after the country took over the group's Dacion oilfield earlier this year, according to Eni's first half financial report.

The figure corresponds to the book value of the asset, it said.

In April, the state-owned oil group Petroleos de Venezuela SA (PDVSA) took over the management of the oilfield that produced about 60,000 barrels per day in 2005 and the first quarter of 2006, and which has 175 mln barrels in reserves.

The company also seized the Jusepin oilfield, which produces 33,000 barrels a day, from Total of France.

The move came after the Venezuelan government adopted a new law on foreign oil companies that imposed higher royalties and profit taxes as part of a new operating accord with PDVSA.

philip.webster@afxnews.com pw/cmr

APX 26 09 06

Copyright ©2006 AFX. All Rights Reserved.

 

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