Statism in government oil sector deepens
Friday, June 25, 2010


By March of 2009, PDVSA controls 51% of the 266 active drills in Venezuela's government would nationalize 11 holes tankers owned an American contractor, said Oil Minister Rafael Ramirez, who argued that the company refused to negotiate with the state oil company PDVSA fees for their services.

"There is a sector of drills owner has refused to discuss with PDVSA and service fees have preferred to have kept these teams for one year in Anaco, Anzoátegui state, in northeastern Venezuela, Ramirez said through a statement of PDVSA Wednesday night broadcast.

Ramirez referred specifically to the drilling of the "company Helmerich & Payne (HP), U.S. transnational firm." "He requested approval of declaration of public utility of the same to the National Assembly (Parliament) in order to assume control," the official said.

The government initiated in 2007 a policy of nationalizations that included, in principle, strategic industries like oil, electricity and telecommunications, and then expanded the following year, in the steel industry, cement and banking.

That pays well
Venezuela contractor must compensate the owner of the 11 U.S. oil drills that the government of Hugo Chavez announced the nationalization, said Thursday a State Department spokesman, Mark Toner.

"I call upon you if they took this measure, compensate the owners of those holes," said the spokesman told reporters.

Toner said the process of nationalization of foreign companies active in Venezuela that Chavez's government ahead "does not bode well for investment climate" in that country. (AFP)