(Xinhua)
Updated: 2008-02-13 11:03

CARACAS -- Venezuela's state oil company Petroleos de Venezuela SA (PDVSA) has stopped oil sales to US-based Exxon Mobil Corp, the Venezuelan company announced in a statement Tuesday.

Petroleos said it has also suspended commercial relations with Exxon Mobil, after courts in Britain, the Netherlands and United States agreed to freeze assets worth US$12 billion owned by PDVSA at Exxon's request in a battle for compensation over the loss of a project in Venezuela's drive to nationalize its energy sector.

Calling Exxon's move "judicial and economic harassment," the statement described it as "an act of reciprocity."

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Announcing that "PDVSA has decided to suspend commercial relations" with Exxon, the Venezuelan firm said it "reserves the right to terminate those contracts whose terms permit them to be rescinded."

Meanwhile, Venezuelan Deputy Energy and Oil Minister Bernard Mommer termed the court orders "pure fantasy."

The minister told Venezuelan TV program "En Confianza" that PDVSA had never been granted a chance to present its arguments during the lawsuits.

Major oil companies including France's Total, Britain's BP Plc and Norway's Statoihydro ASA agreed to submit to the nationalization drive and have negotiated deals with Venezuela to continue as minority partners in the Venezuela's oil projects.

Exxon is the only one which rejected Venezuela's change of policy while talks with ConocoPhillips are still open, said Mommer, criticizing Exxon's move as an attempt to create a negative atmosphere.