Feb. 17 (Bloomberg) -- Venezuelan President Hugo Chavez, who threatened to cut off oil sales to the U.S. a week ago, said the government won't do so unless the South American nation is attacked.

``We don't have plans to stop sending oil to the U.S.,'' Chavez said today in comments broadcast by Venezuelan state television. ``All I've said is that, if the U.S. attacks us, we'll have to decide not to send one drop of oil to the U.S.''

Venezuelan Oil and Energy Minister Rafael Ramirez said Feb. 13 that the country is in an ``economic war'' with the U.S. The world's largest economy is seeking to destabilize Venezuela by backing a lawsuit filed by Exxon Mobil Corp. to freeze assets of state-owned Petroleos de Venezuela SA, Ramirez said.

The conflict stems from a dispute between Exxon and PDVSA, as the state oil company is known, over Exxon's compensation for its stake in a heavy crude oil joint venture that was nationalized last year. Chavez, who has accused the U.S. of trying to undermine his efforts to implement ``21st-century socialism,'' has seized on the Exxon conflict to sharpen his criticism of President George W. Bush.

Exxon has won court orders freezing $12.3 billion in PDVSA's assets as part of the legal battle.

``Listen to me, Mr. Bush, Mr. Danger,'' Chavez said Feb. 10 during his weekly television show. ``If the economic war continues against Venezuela, the price of oil will reach $200. Venezuela will take up the economic war and more than one country is inclined to join us.''

$95.50 a Barrel

Crude oil rose 4.1 percent to $95.50 a barrel in New York last week. The price has surged 61 percent in the past year.

Chavez, speaking today from the oil installation that Exxon abandoned last year when the Venezuelan government took control of four joint ventures in the country's Faja del Orinoco region, called the U.S. oil company a ``thief.'' He said the country's petroleum reserves will never be controlled by the U.S. again.

Venezuela may sue Exxon for allegedly exporting oil from the South American country in 1999 and 2000 without paying taxes and royalties, Chavez said today. The president said PDVSA has evidence that Exxon shipped more than 400,000 barrels of oil from the country without declaring it. Exxon spokeswoman Margaret Ross declined to comment.

Venezuela sells more than half its oil output to the U.S. It can't quickly shift to new customers because its thick, sulfur- rich oil can only be handled by refineries designed specifically for its characteristics. Most of those are on the U.S. Gulf Coast.

Trillions of Barrels

Ramirez said today during the television program that there is a global shortage of oil, and that Venezuela won't have problems finding new buyers. Chavez, who says the Faja has reserves of more than a trillion barrels, said reports that PDVSA is in financial trouble are false.

``Supposedly Venezuela is going to go under, PDVSA is going to go under, because only the U.S. has refineries to process our oil,'' Chavez said. ``Don't believe these lies.''

The president said he's considering the creation of an ``unexpected gains'' tax on the oil industry. The levy would be charged progressively as oil prices rise above average levels, Chavez said.

To contact the reporter on this story: Matthew Walter in Caracas at mwalter4@bloomberg.net.

Last Updated: February 17, 2008 15:51 EST