Did Venezuela Compensate Oil Companies When Companies were "Nationalized?" ( PBS video )

 Various sources, Chevron, Google search, PDVSA, PBS Newshour

First Nationalization – 1976

Under President Carlos Andrés Pérez, Venezuela created PDVSA and nationalized the assets of foreign oil companies.

Did the companies receive compensation?

Yes.
Foreign companies such as Exxon, Shell, Mobil, and Gulf received financial compensation negotiated with the government.

• Compensation was agreed in advance.
• Companies were paid for physical assets and lost future profits.
• Many companies stayed in Venezuela through service contracts, still involved in operations.

Result: This nationalization was relatively orderly and accepted by most companies.

“Re-nationalization” – 2007 under Hugo Chávez

In 2007, Chávez required that PDVSA hold a minimum 60% ownership of all oil projects, especially in the Orinoco Belt. Companies had to either accept new terms or leave.

Did companies receive compensation?

Sometimes, but often only after lawsuits.

Examples:

🟦 ExxonMobil

• Refused new terms and left Venezuela.
• Sued Venezuela internationally.
• Won arbitration, but the compensation awarded was much lower than Exxon sought.
• Venezuela paid only a fraction of the claim.

🟦 ConocoPhillips

• Also refused to accept the new ownership structure.
• Filed multiple international arbitration claims.
• ICSID tribunal eventually awarded Conoco billions, but payment has been slow and incomplete.
• Venezuela has been paying in partial settlements, often through seized PDVSA assets abroad.

🟦 Chevron, BP, Total, Statoil

• Most agreed to remain under the new majority-PDVSA structure.
• They received partial or negotiated compensation for lost stakes, but generally stayed operational in joint ventures.