EXXONMOBIL FILES FOR ARBITRATION

C O N F I D E N T I A L CARACAS 001812 SIPDIS SENSITIVE SIPDIS ENERGY FOR CDAY AND ALOCKWOOD NSC FOR JCARDENAS AND JSHRIER E.O. 12958: DECL: 9/13/2017 TAGS: EPET ENRG EINV ECON VE SUBJECT: EXXONMOBIL FILES FOR ARBITRATION REF: FLATT/DESK EMAIL - SEPTEMBER 12 Classified By: Economic Counselor Andrew N. Bowen for Reason 1.4 (D) ¶1. (C) David Perez (strictly protect throughout),the remaining ExxonMobil (XM) executive in Venezuela, met with the Ambassador on September 12 (ref. A) to inform him that XM filed for arbitration on September 6 with the International Center for Settlement of Investment Disputes (ICSID). XM filed an 8k with the SEC the afternoon of September 12, which has since been made public. XM had four to five days to file the 8k with the SEC following the filing for arbitration. ¶2. (C) The BRV was advised of the filing of the arbitration claim on or around September 6 but has refrained from making any public comments. Perez stated XM reached its decision to file after senior XM officials met briefly with Venezuelan Petroleum Corporation (CVP) President Del Pino three weeks ago. It was clear at the meeting that there had been very little progress in negotiations and that the sides were still several billions of dollars apart. ¶3. (C) Perez stressed that the BRV and XM could still reach a negotiated settlement. He closed the meeting by asking the Ambassador to keep the information close hold. DUDDY