Venezuela To Seize Foreign Oil Projects

(AP)  President Hugo Chavez ordered by decree on Monday the takeover of oil projects run by foreign oil companies in Venezuela's Orinoco River region.

Chavez had previously announced the government's intention to take a majority stake by May 1 in four heavy oil-upgrading projects run by British Petroleum PLC, Exxon Mobil Corp., Chevron Corp., ConocoPhillips Co., Total SA and Statoil ASA.

He said Monday that has decreed a law to proceed with the nationalizations that will see state oil company Petroleos de Venezuela SA, or PDVSA, taking at least a 60 percent stake in the projects.

"The privatization of oil in Venezuela has come to an end," he said on his weekday radio show, "Hello, President." "This marks the true nationalization of oil in Venezuela."

By May 1, "we will occupy these fields" and have the national flag flying on them, he said.

The law is expected to be published shortly in the government's official gazette, and the companies will have four months from then to negotiate terms and conditions with PDVSA to decide whether they will take part in new joint ventures as minority partners, Chavez said.

Chavez did not detail how the government will pay for its increased share in the projects in which the companies are estimated to have invested some $17 billion.

The government has compensated companies reasonably in recent weeks for nationalizations it has carried out in other sectors, but those agreements were for assets valued far less than the oil projects.

The Orinoco projects are the only oil-producing operations in the country remaining under private control, which Chavez called "disgraceful."

But he added that Venezuela doesn't "want the companies to go ... We just want them to be (minority) partners."

Also Monday, Chavez called President George W. Bush the "king of liars," predicting that the U.S. leader would not receive a warm reception on his upcoming Latin American tour.

"The South American people will give a welcome to the little gentleman from the North, the king of invaders, the king of liars," Chavez said referring to Bush's planned tour next month to Brazil, Uruguay, Colombia, Guatemala and Mexico.

"It is going to be more interesting that you think, the visit of the little gentleman," Chavez told his listeners on his weekday radio talk show, "Hello President."

[fizzal-2009]

We have those dinosour tracks cast in stone headed south with their dna and bone,s, after they ate all the flowers in texas and left there with an erosion problem. Lets have what he calls his oil tested for dna and make him pay for the damage.

[katie-couric]

Chavez does not want foreign oil companies to leave. He needs their expertise in running the oil projects. He wants them to become minority partners.
So they don%u2019t rip Venezuela off.
The way big oil rips us off.
It%u2019s even possible, although not probable, that, unlike the oil companies, Chavez will compensate them for their investment rather than just steal those assets.
The way big oil steals from us.

Now the stock market dumped big time today - 400 points. Because of this & other news.
And the Wall Street boys don%u2019t want anybody getting the idea you can take their investments and hard earned wealth away from them. No matter how outrageous their wealth is. Or how noble your causes might be.

So look for a push %u2013 not an assassination %u2013 but a move by the administration at the insistence of the %u201CMoney Boys%u201D to send us militarily into Venezuela.
It will be: %u201CChavez is a Noriega or a Castro or a child molester%u201D or some such nonsense, as an excuse to send in troops. To get him out. And gets things back to normal. Which is: The %u201CBig Boys%u201D take all the money. And the peasants %u2013 and that%u2019s probably YOU if you are reading this - pay through the nose.

Oil. Just oil. No other commodity. Oil needs to be treated just like all the other critical monopolized resources: natural gas, electric power, water, wired telephone service, etc., in this country. Oil needs to become a PUBLIC UTILITY.

[randalds]

Well, it's their oil and their country, so they get to set the rules for the game. If we don't like it, maybe we should make finding another way to fuel our economy a true national priority.

Posted by wvce at 02:26 AM : Feb 27, 2007

Amen.

[randalds]

Grow up..It does have a lot to do with the DNC saying they are going to take away tax breaks so thank Pelosi..
Posted by FARTKNOCKER2 at 12:28 PM : Feb 27, 2007

What a maroon! Gas prices were already high and jumping more when Bush announced the corporate welfare tax breaks for the oil companies. Their profits were (and still are) breaking records as the highest profits in the history of business. Not just American business, but business worldwide throughout history. No companies of any kind have made higher gross profits in the history of the world, yet Bush gave them $15 billion more in tax breaks.

[adventurepa]

"U.S. $$$ and sweat go to build these oil fields."
Maybe money but sweat? Never seen an oil engineer sweat. That's what the cheap labor does.

"Russia and now Venezuela "nationalize" these projects thereby REDUCING ANY INTEREST OIL COMPANIES MIGHT HAVE IN INCREASING PRODUCTION."
OPEC determines production, not the governments.

"Prices go up and you blame it on Bush."
Actually prices have gone up and down. When they go up the oil guys make more money. And they have gone way up before any of the nationalizing went on.
Oil and gas should be .99 cents a gallon because we invaded Iraq. But it's not. Someone is making way to much money. And it isn't the avarage american citizen.
Even if free energy was available they would not give it to us for free.
They would charge us just like they always have.
It keeps them rich and in power.

[dgrobb-2009]

You got to love the left they always start out so positive. They always forget to point out the failures/pitfalls of there ideals.

You know the right uses greed to motivate a country, but the left uses, historically, hunger and starvation to motivate people.

The right over the last hundred years has killed tens of millions through wars etc%u2026 but the left has killed double that amount by their own count. Mostly their own people through purges or %u201Creadjustment camps%u201D (slave factories).

I like a comment from Eisenhower, when asked why he was in the middle of the road he stated %u201C the right and the left (of the road) are where the gutters are%u201D.

[drsnocaps]

You all are out of your freakin' minds... U.S. $$$ and sweat go to build these oil fields so *you* can sit in air conditioned comfort and enjoy your two favorite pastimes - porn and Bush bashing. Meanwhile Russia and now Venezuela "nationalize" these projects thereby REDUCING ANY INTEREST OIL COMPANIES MIGHT HAVE IN INCREASING PRODUCTION. Presto! Prices go up and you blame it on Bush instead of blaming it on your own Bush-bashing which is where it belongs.

[afmca]

Chavez has learned one lesson from history .. if you are going to depend on American capitalism to raise the standard of living for your people .. you eventually get deposed! Basically foreign oil companies suck the natural resource out of the ground and leave only pollution, poverty, sickness, and rich, corrupt politicians behind. Why should Venezualean oil be used to pay 200 million dollar retirement bonuses and tens of millions in CEO salaries at Exxon-Mobil?

[karlimhof]

As this crazed Administration runs amok with war cries around the world, sacrificing its citizens uselessly, and emptying our treasury, China and India quietly reinforce their economic muscle in Africa, South America, and Asia.

We should be doing what American does best - making friends and economic allies around the globe.

[book54552134]

Chavez is the freely elected head of a sovereign nation. They should have the right to make their own economic decisions regarding their nation.
The point of view of those on both the Right and the moderate Left (there is no longer any far Left politican or group in any position of influence in the US) in Washington however, is that nations may make their own decisions only as long as they embrace capitalism and Americanism as well.
In many nations, the US Embassy often has more power and influence pertaining to a nation's domestic and foreign policies than any other so-called sovereign government establishment. This is often the complaint among many in the Middle East.