Venezuela Seizes Williams' Operations

Williams confirmed reports that the Venezuelan government has seized two assets -- El Furrial and PIGAP II -- that the company operates in Venezuela.

After a long period of non-payment by Petroleos de Venezuela S.A. (PdVSA), Williams recently issued notices of default under its services agreements. The seizure of assets and termination of the associated contracts trigger rights to receive payment for the seized assets. The contracts and international law call for international arbitration of any disputes concerning those payments.

In Venezuela, Williams has investments in and operates entities that provide services to PdVSA under long-term agreements. Services include medium-pressure compression, high-pressure gas injection, gas liquids extraction, and gas liquids fractionation.

Williams reported non-cash charges to net income attributable to The Williams Companies, Inc., of approximately $241 million in first-quarter 2009 related to its operations and investments in Venezuela.