This fight between Exxon Mobil, the world's largest private oil firm, and Venezuela's state energy company Petroleos de Venezuela (PDVSA) continues.

Venezuela's state oil company PDVSA made official its decision to cut sales of crude to Exxon Mobil as a counter measure to the legal action of the American corporation against the Venezuelan firm.

ExxonMobil, the multi-national American corporation and direct descendant of John D. Rockefeller's Standard Oil Company, said on Feb. 7 that courts in United Kingdom and the United States had granted its requests to freeze more than $12 billion in assets of Venezuela's state oil company, Petroleos de Venezuela (PDVSA).

President Hugo Chavez announced loud and clear that the country he presides upon will cease to do business with Exxon, a company no longer welcomed in the South American country.

The American giant company is currently seeking compensation after, last year, Chavez seized two ExxonMobil projects worth several billion dollars.

Although Exxon receives only 2% of its supply from Venezuela, the cancellation could cause some problems for the corporation that recently set a new net profit record.

Exxon Mobil also informed Petroleos de Venezuela of a court order freezing a New York bank account, a tactic that netted $242 million. Exxon delayed serving the order to block the account until the South American freed up the money on Feb. 28, according to a Jan. 24 federal court filing in New York

This dispute comes after Exxon reported a record net profit. The company had earnings of about $40.6 billion, which is 3 per cent higher than the amount earned a year before. The figure was higher than Exxon’s 2006 profit record which had set a record for an American corporation.

The fourth-quarter was Exxon’s most profitable quarter ever with a net income rising 14 percent, to $11.7 billion, or $2.13 a share, from $10.25 billion, or $1.76 a share, in 2006. The corporation recorded annual sales of $404.5 billion, up 7 percent from 2006.