Venezuela Seizes Oil Installation From U.S.-Based Compan
Results 1 to 9 of 9

Thread: Venezuela Seizes Oil Installation From U.S.-Based Compan

  1. #1
    Join Date
    Jan 2008
    Location
    Florida Panhandle
    Posts
    3,098

    Exclamation Venezuela Seizes Oil Installation From U.S.-Based Compan

    Venezuela Seizes Oil Installation From U.S.-Based Company
    Venezuela Seizes Oil Installation From U.S.-Based Company - International News | News of the World | Middle East News | Europe News - FOXNews.com
    Friday, May 08, 2009

    * Print
    * ShareThis

    Venezuela has seized a major oil installation from the U.S.-based Williams companies, Reuters quoted a company source.

    President Hugo Chavez said his government would begin seizing control of some oil contractors on Friday following the National Assembly's approval of a law that paved the way for the takeovers.

    The law approved by the largely pro-Chavez assembly on Thursday enables state oil company Petroleos de Venezuela SA, or PDVSA, to take over contractors without following the usual procedures to expropriate business.

    "Tomorrow we'll start recovering the goods and assets that will now belong to the state," Chavez said in a televised speech late Thursday after the legislative vote.

    He said PDVSA would seize 300 boats as well as dozens of docks and other transportation installations in western Lake Maracaibo on Friday, and absorb the 8,000 workers affected.

    Venezuela's state oil company has recently clashed with domestic and foreign service providers that help extract the OPEC nation's heavy crude, accumulating billions of dollars in debts as it aims to renegotiate contracts to reduce costs by 40 percent.

    PDVSA says some of those contracts are now overvalued due to falling crude prices that have shrunk government revenue. Venezuela relies on oil for 93 percent of its export income, but has seen world oil prices slide 61 percent since their July peak to settle at $56.71 on the New York Mercantile Exchange on Thursday.

    The companies covered by the legislation provide such services as natural gas processing, the injection of natural gas or water into oil fields to improve recovery, and management of docks and boats on Lake Maracaibo.

    The law was approved by 153 lawmakers from Chavez's ruling party, while eight lawmakers voted against the measure and three abstained.

    Oil Minister Rafael Ramirez said the law could affect foreign companies such as U.S. natural gas processor and distributor Williams Cos. Inc., based in Tulsa, Oklahoma which said in April that it plans to write off $241 million related to unpaid fees from PDVSA.

    "It's fundamental that we control of all of this to guarantee the development of primary activities," Ramirez said in comments published by Venezuela's state-run Bolivarian News Agency.

    PDVSA has already taken over the operations of some companies that have claimed a default, including the SIMCO consortium, which has worked injecting water into oil fields in Lake Maracaibo for the past 10 years.

    Houston-based Wood Group, which is a 49.5 percent partner in the consortium, said in a statement Thursday that PDVSA took over its operations earlier this year "following the consortium submitting a notice of default due to nonpayment and other contractual disputes." A spokeswoman for the company declined to comment on the new law.

    While Ramirez denied that oil drillers will fall under the law, Patrick Esteruelas, an analyst with the Eurasia Group in New York, said the law's vague wording means these and other service companies could also be affected.

    At least two U.S. oil drillers have halted operations in Venezuela over delayed payments, including Helmerich & Payne, based in Tulsa, Oklahoma. The company has halted seven of its 11 oil rigs in Venezuela this year, saying PDVSA owes it $116 million.

    Venezuelan oil service companies are also "very afraid," said Nestor Borjas, who heads the business chamber Fedecamaras in western Zulia state. PDVSA is behind an average eight months on payments to 220 companies in oil-rich Zulia responsible for everything from oil well maintenance to providing transport, he said.

    Under Chavez, Venezuela has already nationalized foreign-owned steel and cement companies, as well as four major oil projects.

    But Esteruelas said PDVSA seems to be aiming more to pressure companies into accepting its terms rather than planning for widespread nationalizations.

    "I don't think that PDVSA wants to immediately take over the entire service sector," he said. "That would be a logistical nightmare."

    He and other analysts warn the law could discourage foreign investors, including some of the very companies PDVSA is trying to attract to bid on exploration areas in the eastern Orinoco River basin.

    The Associated Press contributed to this report.
    FESTUS
    IN OMNIA PARATUS

  2.   
  3. #2
    Join Date
    Sep 2007
    Location
    Battle Creek Mi
    Posts
    1,853
    Yep BHO must have impressed the Hell out of them boys, and they are responding.....
    "The sword dose not cause the murder, and the maker of the sword dose not bear sin" Rabbi Solomon ben Isaac 11th century
    "Don't be so open minded that your brains fall out!" Father John Corapi.

  4. #3
    Those companies are getting what they deserve IMO. For the past several years Obama-South has been stealing...er...nationalizing the property of any foreign company that annoys him, or who he owes money to. The mere fact that they continued doing business in that environment was sheer folly. I have no sympathy for them at all.

    Lately I have been investing heavily in oil producing companies, but before I commit a dime I do my due diligence to make sure they are not doing business in Venezuela. My best to date is Provident Energy Trust (PVX) - a Canadian oil, oil sand, and natural gas trust.
    The Avatar is my Great-Great Grandaddy, CPL Samuel Francis Bondurant, Co. D, 4th Alabama, Law's Brigade, Benning's Division, 1st Corp, Army of Northern Virginia, shot through right thigh 2 JUL 1863.

  5. #4
    Join Date
    Jan 2008
    Location
    Florida Panhandle
    Posts
    3,098

    Exclamation under any other president...this would be an act of war

    under any other president...this would be an act of war
    FESTUS
    IN OMNIA PARATUS

  6. #5
    Quote Originally Posted by festus View Post
    under any other president...this would be an act of war
    Not true. It happened while Bush was in office also.
    The Avatar is my Great-Great Grandaddy, CPL Samuel Francis Bondurant, Co. D, 4th Alabama, Law's Brigade, Benning's Division, 1st Corp, Army of Northern Virginia, shot through right thigh 2 JUL 1863.

  7. #6
    Quote Originally Posted by festus View Post
    under any other president...this would be an act of war
    Quote Originally Posted by Rick O'Shay View Post
    Not true. It happened while Bush was in office also.

    Under a REAL President they wouldn't DARE!!!!


    Fixed it for BOTH of you...
    People don't like to be meddled with. We tell them what to do, what to think, don't run, don't walk. We're in their homes and in their heads and we haven't the right. We're meddlesome.--River Tam

  8. #7
    Quote Originally Posted by NDS View Post

    Under a REAL President they wouldn't DARE!!!!


    Fixed it for BOTH of you...
    Where is Andrew Jackson when we need him?
    By faith Noah,being warned of God of things not seen as yet, moved with fear,prepared an ark to the saving of his house;by the which he condemned the world,and became heir of the righteousness which is by faith Heb.11:7

  9. #8
    Join Date
    Sep 2007
    Location
    DFW, TX AKA Baja, OK
    Posts
    3
    a little (new) friendly take over competition between dear leaders of two countries...
    Regards and respect

  10. #9
    Quote Originally Posted by HK4U View Post
    Where is Andrew Jackson when we need him?
    Eff Andrew Jackson. He is dead and buried where we need him to be.

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Quantcast