Venezuela-owned oil and gas company PDVSA has agreed to pay Italian major Eni $700 million in cash as compensation for the recently nationalized oil field Dacion, reports Dow Jones Newswires.
Venezuelan Oil Minister Rafael Ramirez stated that the payment will span seven years.
Venezuela seized the oil field in April 2006, after Eni refused to accept the government's new nationalization terms. Eni then commenced international arbitration proceedings.
The agreement stipulates that Eni will stop these arbitration proceedings against PDVSA.
Additionally, Ramirez pointed out that this agreement makes ExxonMobil the only company struggling with Venezuela to resolve the country's nationalization of oil and gas fields.
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