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Re: [energyresources] Re: Venezuela Political Crisis Deepens ... Information on oil activities

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  • LUIS RODRIGUEZ
    Info on Oil activities / political situation: Oil: Several global energy companies are expected to go into business with Venezuela - not in oil, which remains
    Message 1 of 1 , Nov 21, 2002
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      Info on Oil activities / political situation:
       
      Oil:
       
      "Several global energy companies are expected to go into business with Venezuela — not in oil, which remains a nationalist symbol, but in natural gas. ...Though Petróleos is legally bound to hold a controlling stake in all oil projects, foreign companies are permitted to control gas ventures"
       
      Comments, based on interpretation of Actual Law statutes:
      It is possible for private (national and/or international) corporations to participate in exploration and production of oil in Venezuela. However, they must associate with the state that will have a minimum of 51 percent of the shares (so it will be difficult to agree with it, even though there will be a tax break).
       
      In all other downstream activities (including Refining Process),  any company (national or international) can participate alone (100 percent) or in association with the state/other companies, being allowed to have as many shares as wanted/agreed. 
       
      Tax will be 34 %, if they are in just one sector (downstream or upstream or commercial). Actual tax rate is 66.7 %
       
      I emphasize that the association requirement (and 51 % controlling..) only applies to oil exploration and production activity. Also that in the northern area, there might be very light crude oil (condensate) in addition to gas  
       
      Rest of information....

      http://www.nytimes.com/2002/11/21/business/worldbusiness/21GAS.html?tntemail1

      BUSINESS / WORLD BUSINESS   |  November 21, 2002
      Venezuela Ready to License Rights to Offshore Gas
      By FRANCISCO TORO (NYT)
      Several global energy companies are expected to go into business with Venezuela — not in oil, which remains a nationalist symbol, but in natural gas.

      http://www.nytimes.com/2002/11/21/business/worldbusiness/21GAS.html?tntemail1
       
      Crisis Negotiation:
      Looking for Political solutions ahead of Supreme Court Decisions (Parties are trying to avoid going into litigation that will order them to do/restrain performing certain actions, otherwise declared outlaw..):
       
      INTERNATIONAL / AMERICAS   |  November 21, 2002
      Venezuela Makes Another Halting Attempt at Talks on Crisis
      By DAVID GONZALEZ (NYT)
      In the two weeks since the Organization of American States started negotiations, they have been upstaged by the talk — and action — on the street.

      http://www.nytimes.com/2002/11/21/international/americas/21VENE.html?tntemail1

      regards,
      Luis
      From Oakville.
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