Caracas calls for Dutch deal rejig

Venezuela plans to revamp a bilateral investment treaty with the Netherlands because oil companies have started "abusing" the agreement, Energy Minister Rafael Ramirez said.

Ramirez said companies ranging from Norway's Statoil to China National Petroleum Company have registered in the Netherlands to take advantage of legislation that provides extensive protection for companies.

"What was created as a mechanism to preserve investment capital has become a shortcut for companies to protect themselves under legislation in the Netherlands that is much more liberal," Ramirez told reporters.

US oil giant ExxonMobil has taken Venezuela to international arbitration under this treaty for the 2007 takeover of its holdings in the Cerro Negro oil project, said Reuters.

But renegotiation would not affect this dispute because even if Venezuela allowed the accord to lapse, the treaty's benefits would extend another 10 years to the companies originally covered under it.

Ramirez said Venezuela's foreign ministry would be in charge of the renegotiation.