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US motorists should not worry about oil shipments: Chavez

Venezuelan President Hugo Chavez sent a soothing message to US motorists, saying that Venezuela is not preparing to cut off oil shipments to the US.

The socialist leader rattled oil markets when he threatened a week ago to halt shipments to the US in retaliation for Exxon Mobil Corp's success in convincing courts in the US and Europe to freeze Venezuelan assets.

"We don't have plans to stop sending oil to the United States," Chavez said on Sunday during a visit to heavy-oil projects in Venezuela's petroleum-rich Orinoco River basin that were nationalized last year.

But he added that Venezuela could cut off supplies to the US if Washington "attacks Venezuela or tries to harm us."

Chavez has repeatedly warned against a possible US invasion to seize control of Venezuela's immense oil reserves. US officials have denied any such plan exists. The US relies on Venezuela for about 10 percent of its oil imports.

The Chavez administration is locked in a legal battle with Exxon Mobil over compensation for the nationalization of one of four heavy-oil projects in the Orinoco River basin.

Exxon Mobil, the world's largest publicly traded oil company, is seeking to freeze billions of dollars in Venezuelan assets in the US and Europe to guarantee a payoff if it wins a decision by an international arbitration panel.

Last month, a British court injunction ordered the temporary freezing of up to US$12 billion in assets of state-run Petroleos de Venezuela SA (PDVSA).

Last Thursday, Oil Minister Rafael Ramirez said Exxon Mobil was demanding more than 10 times the compensation it may deserve from Venezuela for nationalizing the oil venture.

Exxon Mobil walked away from its heavy-oil upgrading operations in the Orinoco basin after Caracas changed the terms of the contract. Other major oil firms, including the US' Chevron Corp, France's Total, Britain's BP PLC and Norway's StatoilHydro ASA, have made deals to continue on as minority partners.
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