By IANS
Caracas : President Hugo Chavez has warned he will cut off Venezuela’s oil flow to the US if the latter launches an economic war against his country via firms like Exxon Mobil.
Chavez delivered the warning on his weekly radio and television show “Alo Presidente” Sunday after Exxon Mobil Corp won court rulings to freeze $12 billion worth assets of state-run oil firm Petroleos de Venezuela S.A. (PDVSA), EFE news agency reported Monday.
“If you freeze our assets and cause us harm, we will cause you harm. Take note of that Mr Bush, Mr Danger,” the Venezuelan leader said referring to US President George W. Bush.
In June 2007, Chavez had forced all foreign oil companies to transfer about 60 percent of their business in Venezuela to PDVSA. Many companies like TotalFinaElf of France, Statoil of Norway, BP of Britain and Chevron of the US accepted the new conditions, but Exxon Mobil and the third-largest US oil firm, Conoco Phillips, sought international arbitrage and withdrew from the country.
Houston-based Exxon Mobil Friday said it had won court orders in Britain and the Netherlands to freeze up to $12 billion in PDVSA assets.
Reacting to the US firm’s announcement, Chavez said if an economic war was unleashed against Venezuela “the price of oil will touch $200 per barrel.”
“And more than one country is ready to go along with us in that economic war. You’re not going to frighten us and you’re not going to dissuade us,” he said.
Chavez went on to say that Exxon Mobil was one of the firms that were on the “spear point of imperialism” and he included it among the “imperialist bandits, white collar thieves, corruptors and topplers of governments”.
Venezuelan Energy Minister Rafael Ramirez said the freeze would not affect PDVSA’s operating capability.
Venezuela supplies about eight percent of US’s total annual oil consumption and it is believed an oil embargo will lead to an adverse impact on the world’s largest economy.
Relations between the two countries have long been strained with Chavez accusing Washington of being behind the failed coup attempt against him in 2002. The Venezuelan leaders also called Bush “the devil” at the UN General Assembly in 2006.