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Nicaragua Confiscation Illegal, Unsafe

Nicaragua's confiscation of an ExxonMobile terminal for offloading Venezuela oil is both illegal and unsafe, company officials say.


The recent confiscation of a Nicaraguan fuel-storage terminal owned by ExxonMobil is illegal and unsafe, the company says. Meanwhile, U.S. officials are warning that the action will seriously damage economic relations with Nicaragua. The confiscation comes after Nicaraguan president Daniel Ortega has repeatedly threatened to expel Spanish power company Union Fenosa, which controls Nicaragua's two distribution companies.

"We are demanding that the government complies with the law," says Alfredo Fernandez-Sivori, an ExxonMobil spokesman.

Nicaraguan police took control of the terminal, located in Corinto, on August 18. The police were acting on orders from a Nicaraguan judge who claimed Esso, the subsidiary of ExxonMobil, owed Nicaragua back taxes of $3 million.


"ExxonMobil was totally surprised," Fernandez says about the order from the judge and the confiscation. "Esso doesn't owe a single dollar in taxes. The origin of the embargo is for...

Keywords: Petronic, Sandinista party, Code Denim, International Textile Group


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