Tweet
This is just stupid. Chavez recently demanded that all foreign oil companies who operate oil fields in Venzuela give 51% of the field to the government free of charge. Of course the oil companies who paid full market value for these field invested millions and millions of dollars to modernize them and they don't want to have Chavez steal them without even bothering to pay for the property he has stolen. In the end it will be the people of Venzuela who are poorer and who have fewer jobs because this idiot has chased all the foreign investors out of the country.
So does anyone think this is actually a good economic policy? Does anyone think Chavez is anything other then another tin pot strong man who is using nationalism to justify his autocratic nature to the detriment of the rule of lawand the well being of his citizens. The 60's were full of rulers who behaived similiarly and the other thing they all have in common is they turned their countries into economic lagards.
Venezuela takes back oil fields
Venezuela has taken control of two oil fields operated by French firm Total and Italy's Eni.
The government said it had taken the step after the failing to agree a deal with the two firms which would give it a majority stake in new ventures.
President Hugo Chavez has been working to strengthen state control over oil production in the country.
So far, 16 oil firms have agreed to change their operations into joint ventures with state oil firm PDVSA.
US based Chevron, Royal Dutch Shell and Spain's Repsol are among the companies that signed the agreement on Friday.
In an interview on state television, Minister Rafael Ramirez said the government took over the fields operated by Total and Eni on Saturday.
"We are waiting for a resolution with these operators after they exhausted the possibility of entering into the mixed companies," Mr Ramirez added.
Legal action?
Total's Jusepin field produces about 30,000 barrels of oil a day, while Eni's Dacion field produces almost 60,000 barrels per day (bpd).
Eni has vowed to fight the takeover which it declared illegal.
"Eni believes that this action by PDVSA is a violation of Eni's contractual rights," it said in a statement.
The company added it was considering possible legal action and would be seeking compensation.
Total confirmed its oil field had been taken over, but declined further comment.
Tighter controls
Last year, Mr Chavez declared 32 oil exploration deals in the country illegal - prompting the change to the contracts.
PDVSA officials had voiced fears that the previous agreements were disguised attempts to privatise the country's oil industry.
However, some oil firms have refused to sign new deals, arguing that they have pumped millions into operations in Venezuela, and now may not see any return on their investment.
Venezuela is currently the world's number five crude oil exporter.
The government has been tightening its grip on the oil sector to raise additional funds to fight poverty in the country.
As well as demanding firms give up majority control of their Venezuelan oil ventures, the government is also demanding firms pay more taxes.
Last month, BP was slapped with a back tax bill of $61.4m (£35m) covering 2001 to 2004.
Venezuela has taken control of two oil fields operated by French firm Total and Italy's Eni.
The government said it had taken the step after the failing to agree a deal with the two firms which would give it a majority stake in new ventures.
President Hugo Chavez has been working to strengthen state control over oil production in the country.
So far, 16 oil firms have agreed to change their operations into joint ventures with state oil firm PDVSA.
US based Chevron, Royal Dutch Shell and Spain's Repsol are among the companies that signed the agreement on Friday.
In an interview on state television, Minister Rafael Ramirez said the government took over the fields operated by Total and Eni on Saturday.
"We are waiting for a resolution with these operators after they exhausted the possibility of entering into the mixed companies," Mr Ramirez added.
Legal action?
Total's Jusepin field produces about 30,000 barrels of oil a day, while Eni's Dacion field produces almost 60,000 barrels per day (bpd).
Eni has vowed to fight the takeover which it declared illegal.
"Eni believes that this action by PDVSA is a violation of Eni's contractual rights," it said in a statement.
The company added it was considering possible legal action and would be seeking compensation.
Total confirmed its oil field had been taken over, but declined further comment.
Tighter controls
Last year, Mr Chavez declared 32 oil exploration deals in the country illegal - prompting the change to the contracts.
PDVSA officials had voiced fears that the previous agreements were disguised attempts to privatise the country's oil industry.
However, some oil firms have refused to sign new deals, arguing that they have pumped millions into operations in Venezuela, and now may not see any return on their investment.
Venezuela is currently the world's number five crude oil exporter.
The government has been tightening its grip on the oil sector to raise additional funds to fight poverty in the country.
As well as demanding firms give up majority control of their Venezuelan oil ventures, the government is also demanding firms pay more taxes.
Last month, BP was slapped with a back tax bill of $61.4m (£35m) covering 2001 to 2004.
Comment