They started asking for $20 billion,” Escarra said, referring to Exxon’s original demands for compensation. “Talks dropped to around $12 billion, and now they are around $6 billion. Venezuela has to pay -- we are clear on that. The problem now is how much we will pay.”

Chavez, since coming to power in 1999, has nationalized parts of the oil, metals, cement and utilities industries. In 2007, he forced foreign oil producers into joint ventures as minority partners. Irving, Texas-based Exxon Mobil andConocoPhillips (COP) rejected the revised terms and instead entered into international arbitration.

“Exxon Mobil does not comment on media reports,” said Patrick McGinn, a Houston-based spokesman. Exxon, the world’s largest oil company, reduced the amount it’s seeking for the takeover of its Cerro Negro venture in the Orinoco heavy crude belt to $7 billion from $12 billion last year, PDVSA said in a bond prospectus at the time.

“Venezuela is evaluating the amount that we would consider to be a triumph,” Escarra said.

Venezuela Oil Minister Rafael Ramirez said the country proposed paying Exxon $1 billion in compensation, Reutersreported. Phone calls after business hours to PDVSA, as the state oil company is known, were not returned.