Venezuela takes over Cerro Negro oil

CARACAS, Venezuela, March 5 (UPI) -- Venezuela and Exxon Mobil reached agreement Monday for the state takeover of the Cerro Negro heavy oil project.

Instead of paying for the majority share of the Exxon Mobil project in cash, Venezuela reportedly agreed to compensate the U.S. oil company in crude.

As part of his wide-ranging plan, Venezuelan President Hugo Chavez announced state-run PDVSA would acquire a majority share of foreign projects in the Orinoco River reserve.

PDVSA will buy at least 60 percent shares of the projects in Orinoco run by foreign firms such as Exxon, Chevron, BP and Total SA.