Russia News.Net reported that Venezuela's state owned oil firm said that it will pay US oil giant ExxonMobil USD 255 million in compensation for nationalized assets, less than one third of what the US company said it was awarded by an arbitration panel.

Petroleos de Venezuela or Pdvsa said that the money will be paid to the US firm within 60 days. Pdvsa also said it will be deducting certain debts owed by Exxon from the original award of USD 907 million.

The firm also calls the decision a successful defense, saying ExxonMobil initially demanded about USD 12 billion in compensation. There was no immediate comment from ExxonMobil to Pdvsa's comments.

ExxonMobil sought arbitration after the government of Venezuelan President Mr Hugo Chavez nationalized an oil project in 2007. The company also is pressing its case before a World Bank tribunal.

Mr Chavez has made oil reforms the centerpiece of his plan to create a 21st century socialist revolution in Venezuela.

(Sourced from www.russianews.net)