Venezuela says advancing in talks with Conoco

CARACAS, Aug 25 (Reuters) - Venezuela is advancing in talks with U.S. oil giant ConocoPhillips and will meet with the company next week to discuss the 2007 nationalization of its assets, a Venezuelan official said on Monday.

Conoco has filed arbitration proceedings against Venezuela for last year's nationalization of heavy oil projects in the Orinoco Belt, but has maintained simultaneous discussions to reach an out-of-court compensation settlement.

"We are advancing ... next week we have a meeting," said Eulogio del Pino, a director at Venezuelan state oil company PDVSA.

Chavez took over four multibillion-dollar heavy oil upgrading projects as part of a nationalization drive, edging Exxon Mobil (XOM.N) and ConocoPhillips out of the OPEC nation in the process.

PDVSA ruled out talks with Exxon after the company froze $12 billion worth of Venezuelan assets in efforts to securecompensation for nationalized holdings. (Reporting by Fabian Andres Cambero, Writing by Brian Ellsworth; Editing by David Gregorio)