Monday, January 02, 2006

Venezuela takes control of private oilfields

The Financial Times

Venezuela has this week taken state control of 32 privately operated oilfields in a move that will raise fiscal revenue but could damp future investment to boost output from the world’s fifth-largest exporter.

The transitory contract conversions pave the way for Petróleos de Venezuela, or Pdvsa, the state-owned oil company, to formalise holdings of up to 70 per cent in the new joint ventures.

Majority state ownership over the affected oil units fulfils a policy goal of President Hugo Chávez, who has long called for greater control of Venezuela’s oil reserves, which are the largest in the Americas....

Hugo just loves to thumb his nose at chimpy. He has forced big oil to play by his terms, and has nationalized enough of the nation's oil to balance the books, and his people overwhelmingly support him for it.

(related posts)
Head South, Turn Left
Misery in the Name of Democracy
Bolivia To Legalize Cocaine
Venezuela MPs accuse US of 'plot'

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