By Archives / El Pais-Uruguay

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The decision of Venezuela's National Constituent Assembly (ANC) to include a clause in the country's constitution to ban the privatization of oil company PDVSA is a "step back and a clear mistake," according to Oil Chamber president Luis Eduardo Paul.

"The idea of using income from oil sales to develop the country's other areas is about 80 years old and has proven to be wrong," he said.

PDVSA president Hector Ciavaldini said he does not agree with but will respect the ANC's decision. "I think the ownership of state companies is not a constitutional issue. Besides that, the ANC's decision gives us enormous inflexibility to operate," he said.

Ciavaldini recalled that PDVSA has interests in many other companies, including stakes in heavy crude production and processing ventures with other foreign companies. It also owns 15 refineries throughout the world. The company must have flexibility to sell some assets and buy others, he added