Mumbai: Venuezela has reached a deal with Eni SpA compensating the Italian oil company for the seizure of the Dacion oil field, even as Veneuzuelan government has said US energy major Exxon Mobil's investments in Veneuzuela's energy sector were worth just 1.2 million against the company's claim of $12 million.

Dacion, worth an estimated $839 million, was seized in April 2006 by the government of Venezuelan President Hugo Chavez. Eni had operated the field under a service agreement with Venezuela's state oil company Petroleos de Venezuela SA, or PDVSA.

The government ordered the seizure after Eni refused to renegotiate its operating contract for the field.

Exxon is seeking $12 billion (£6.1 billion) in compensation from PDVSA after its interests were nationalised last year.

In fact, Exxon succeeded to freeze $12 billion of PDVSA assets the world over under different court orders.

"They ask for too high an amount for their compensation," said Veneuzuelan oil minister Rafael Ramirez.

Meanwhile, PDVSA has stopped selling oil to Exxon, which sources 5 per cent of its crude from Venezuela. Venezuela's president Hugo Chavez has also accused the US government of being behind Exxon's legal move.

Chavez has also threatened to cut all Venezuelan oil exports to the US, although analysts said such a move was very unlikely as Venezuela needs the US dollars

Chavez also threatened to cut all Venezuelan oil exports to the US, which it accused of  supporting Exxon's legal move, calling it a "just and fair" compensation claim.

US energy secretary Sam Bodman also offered to compensate Exxon for losses suffered in Veneuzuelan ventures.

Exxon would easily replace the crude that PDVSA had stopped selling, he said, adding that the US government could also offer Exxon oil from the country's strategic reserve if needed.