Can Exxon Corner Chavez?

Exxon won temporary court orders in Britain, the Netherlands and the Caribbean freezing assets worth up to $12 billion and another order in New York locking up $315 million in funds controlled by state-run oil company PDVSA in a U.S. bank.

A U.S. court will hear arguments regarding its injunction at a hearing scheduled for next Wednesday in New York, and a London court will hold a hearing on February 22.

The rulings prevent Venezuela from selling many of its assets and could damage its ability to conduct international business, since its business partners might worry they could get dragged into the dispute, legal experts and lawyers said.

With Venezuela's ability now to run a major business through financial centers in New York and London in question, Chavez may be forced to take a softer stance with the largest U.S. oil company.

"It's a tremendous comfort, a security blanket, for Exxon. It also gives Venezuela an incentive to get this over with," said Anthony Sabino, professor of law at St. John University's Tobin College of Business.

The aggressive legal moves by Exxon are the latest salvo in the battle between oil companies and Venezuela, which last June seized control of the oil development projects there, forcing the companies to sell it majority stakes or leave the country.

Total, Chevron Corp, Statoil and BP Plc agreed to sell PDVSA controlling stakes in projects and remain in Venezuela as minority partners, while Exxon and U.S. peer ConocoPhillips refused, prompting Venezuela to expropriate their holdings.

ConocoPhillips has also initiated arbitration against PDVSA but has not sought to have Venezuelan assets locked up.

EARLY VICTORY