These attributes could be the reason that they make Tillerson an ideal candidate for the Trump administration’s most valuable asset, and he has a profound knowledge of the role oil plays throughout the world, particularly within Russia and China, and how to restore American political position in the world.
However, conflicts of interest could affect his tenure. Tillerson had a strong connection to Russia in 2013 when Russian president Vladimir Putin granted him the Order of Friendship award, and a recently leaked document has revealed that he was director of the US-Russian company based in the Bahamas, Exxon Neftegas.
The relationship between him and Venezuela, which is the world’s 11th-ranked oil producer and petroleum, was even more complicated. How will Tillerson’s State Department engage this crisis-stricken rich in oil South American country?
Exxon and Venezuela A bumpy road
ExxonMobil’s story in Venezuela began in 1921, which was the time that their predecessor, Standard Oil, set up its business in Venezuela. What has transpired since then, especially under the governments that were referred to as ” Socialism of the 21st Century” under the governments that included Hugo Chavez and Nicolas Maduro is not always a good sign well for bilateral relations between the United States and Venezuela under the leadership of Tillerson.
Venezuela’s ties with ExxonMobil were cut off in 1976, when President Carlos Andres Perez sought to nationalize this oil-related industry. The industry was revived in the late 1990s, after Perez during the second year of his presidency, introduced the known as ” Apertura Petrolera” (” oil opening“), in an effort to draw foreign investment and expand an Orinoco petroleum belt.
However, the moment Hugo Chavez decided to re-nationalise the oil industry in 2007, the country’s state-owned company for oil, PDVSA, acquired a majority stake in national oil companies. ExxonMobil was, at the time of its acquisition, under the leadership of Tillerson, rebuffed the government’s proposal to purchase book value for its assets. It countered with a demand for arbitration with the investment dispute settlement center. ExxonMobil was hoping to get the market value of its investments, estimated at $15 billion.
In 2014, Venezuela was required to be compensated ExxonMobil $US1.6 billion.
Venezuelan Energy Minister Rafael Ramirez holds a paper declaring that ‘PDVSA beat Exxon’. Jorge Silva/Reuters
Another issue arose in 2015, again under Maduro, the president, in the year ExxonMobil began oil-related operations in the waters of neighboring Guyana. The area is located in close proximity to the Venezuelan Delta Amacuro state, in the Essequibo territory, the which Venezuela has declared its ownership for over 100 years.
In 2002 and 2000, in 2000 and 2002, the Venezuelan government filed allegations at the World Petroleum Congress about Guyana’s concessions offered to the Essequibo. The international companies were initially forced to stop drilling; however, in 2012, drilling was resumed. Both countries are now looking for a peaceful solution on the boundary dispute, which is currently a matter of contention together with UN Secretary General. UN Secretary General.
Additionally, Esso Exploration and Production Guyana Ltd which is which is an ExxonMobil affiliate, has stated that it will keep developing the region. It makes up a $200 million contract for ten years with Esso with Guyanese government. Guyanese government.
ExxonMobil has accused Maduro of trying to disrupt regions by partnering with Guyana, as ExxonMobil has voiced its displeasure over the Venezuelan government’s attempts to make countries hostile to the company..
