For the first time ever since US oil major Exxon Mobil filed a lawsuit against Venezuelan state-run oil giant Pdvsa last January, the Venezuelan holding will be heard by the Supreme Court of England to submit its allegations against and an injunction freezing up to USD 12 billion in Pdvsa's assets.

Pdvsa's legal counsels have been preparing for weeks to face the hearing. They are to produce a number of depositions that contradict some of the arguments filed by Exxon Mobil. Even Venezuelan Vice-Minister of Hydrocarbons Bernard Mommer is expected to testify.

The defense lawyers of Pdvsa are approaching the case focusing on the good faith Pdvsa has shown at every stage in the negotiations of a compensation for Exxon Mobil's stake in heavy-crude oil project Cerro Negro. Further, they are to argue that the two companies own common assets -particularly Louisiana-based Chalmette refinery- that are enough to pay a reasonable compensation to Exxon Mobil.

Further, Pdvsa's lawyers are to argue that the freezing injunction is disproportionate, as Exxon Mobil originally asked for USD 5 billion compensation, according to documents Pdvsa is to produce. Additionally, the Venezuelan holding is arguing that a third party, Nynas, is directly hit by the freezing injunction.

Pdvsa's final goal is to have judge Andrew Smith to render null and void the freezing injunction, or at least cut it down to USD 5 billion -the sum Exxon Mobil asked for originally.

Should Pdvsa's action fail this time, the holding has a last chance to change the ruling by filing an appeal or requesting a revision of the original ruling.