It is "premature" to say whether Houston-based ConocoPhillips will get fair compensation for its interests in Venezuela, Jim Mulva, chairman and chief executive, said at the company's annual meeting in Houston last month.

The company's assets in the country were recently nationalized by President Hugo Chavez, and its operatorship was taken over by the country's national oil company, PDVSA.

"We have not received any firm proposals yet; June 26 is the date that has been set for all terms to be agreed to by all the companies involved," Mulva said. "Our operatorship has been taken over on all of our ventures there, and quite a number of our employees have been replaced by PDVSA."

Mulva cited arbitration as a last resort in resolving the Venezuela matter. "Our emphasis is toward finding an amicable solution by which ConocoPhillips can continue with these projects. Arbitration would be a failure on our part to come to an amicable solution."

While the company's outlook in Venezuela remains foggy, its operations in Russia are growing, Mulva said. The company currently has 20% participation in Russia-based Lukoil and other investments in the country.

"The government in Russia has been in favor of our participation there. We do see opportunities for additional investment in Russia through our partnership with Lukoil."

Elsewhere internationally, ConocoPhillips will continue to concentrate on its 50% joint venture with Calgary-based EnCana Corp. in the Foster Creek and Christina Lake heavy-oil projects in northern Alberta and the company is interested in more heavy-oil activity.

Meanwhile, he said, U.S. energy independence is "not a realistic expectation...We need energy security, which comes from getting energy from diversified sources as well as utilizing all alternatives, including coal, solar and wind."

ConocoPhillips is de-emphasizing the role liquefied natural gas (LNG) will play in supply in the future, he added. "The amount coming into the U.S. is going to be less than we thought, and it's going to be delayed. The major supplier of this is Qatar, which has stopped many of its projects."

Mulva said it is frustrating for ConocoPhillips to try to meet the public's expectations with its hands tied behind its back.

When asked by a stockholder if his well-publicized meeting with California's Gov. Arnold Schwarzenegger about setting new metrics for taking carbon dioxide out of the atmosphere would result in more access for drilling off the California coast, Mulva said it was doubtful.

"Gov. Schwarzenegger and I have not discussed drilling offshore California," he said. "I doubt that is something that is viable in the short or medium term."