Venezuela Expands State Control Of Oil

Exxon, ConocoPhillips Refuse To Sign Deals Under Tougher Rules

(AP)  Exxon Mobil Corp. and ConocoPhillips refused to sign deals Tuesday that would enable them to keep pumping oil under tougher terms in Venezuela.

Petroleos de Venezuela SA, or PDVSA, said that by Tuesday's deadline, it would sign with only four of the six major oil companies involved in lucrative oil ventures in the Orinoco River region — U.S.-based Chevron Corp.; Britain's BP PLC, France's Total SA and Norway's Statoil ASA.

PDVSA said it was taking ownership of ConocoPhillip's 50.1 percent stake in the Petrozuata project, as well as the La Ceiba block currently under development near western Lake Maracaibo that is 50-percent owned by Exxon Mobil.

"On the basis of the negotiations conducted, the former strategic association Petrozuata and the La Ceiba ... block pass to the total control of PDVSA," the state oil company's statement said.

PDVSA's stakes in the other four Orinoco joint ventures will rise to an average of 78 percent, from previous government stakes ranging from 30 to 49.9 percent, the state company said.

A ConocoPhillips company official said earlier Tuesday that the Houston-based oil major has refused to sign the deal ahead of the deadline set by President Hugo Chavez's government. "We will not sign a memorandum of understanding," said the company official, who insisted on anonymity before an official announcement.

ConocoPhillips shares fell $1.31, or 1.7 percent, to $76.73 in midday trading.

Venezuelan Oil Minister Rafael Ramirez has said ConocoPhillips would be expelled from the country if it continues to resist.

There were no places set up at the table for ConocoPhillips or Exxon Mobil at the signing ceremony with the major international companies, which have invested more than $17 billion in the Orinoco projects overall.

Chavez's government already took over operational control of Venezuela's last privately run oil fields on May 1 as part of its nationalization drive.

Houston-based ConocoPhillips has been the most exposed: it is involved in two of the four projects and is the single largest private oil producer in the Orinoco, with its share of production equal to about 128,000 barrels a day.

ConocoPhillips is the third-largest U.S. oil company, and its Venezuelan projects account for about 4 percent of the company's daily global oil and natural gas production. Its other Venezuelan interests include developing the Corocoro offshore oil field and oil exploration activities in the Gulf of Paria and Plataforma Deltana.

Oil analysts don't expect ConocoPhillips' decision to have any impact on world oil supplies or prices. That's because energy traders don't see any one company's presence in Venezuela as having a big affect on overall production from the South American nation.

"It's not going to result in any less crude coming out of there," said Kevin Saville, managing editor for the Americas energy desk at Platts, the energy research arm of the McGraw-Hill Cos.

Oil production lost to ConocoPhillips or any other oil major will shift to someone else, said James Cordier, president of Liberty Trading Group in Tampa, Florida.

"Before everyone walks out, a deal will be struck and production there will continue," Cordier said.

Total had no immediate comment on Tuesday's deadline, company spokeswoman Patricia Marie said. Chevron also declined immediate comment. And Statoil spokeswoman Rannveig Stangeland said the company has "nothing new to communicate."

"We have a good dialogue with Venezuelan authorities," the Statoil spokeswoman said.

The deals to be signed Tuesday also set the terms of minority stakes in separate exploration projects outside the Orinoco that have yet to begin producing oil.

Venezuela has claimed that foreign oil companies owe billions of dollars in back taxes related to oil projects.

[grimloxz]

(shaking head slowly)

Just look at the simps out here standing up for the American Corps. You guys forgot about Enron and the gas gouging already? bunch of simps. Americans I have said before are mental midgets when it comes to recognizing who runs what in their own country. You don't like the rules in *someone elses* country and you get mad?

Puh-leez.

As you guys love to say, if you don't like it then go back to your own country. It ain't your oil to begin with and wanna just bogart? F outta here, it's theirs and can do what they see fit with it.

Stop sulking like the spoiled brats you are.

Must be out of your rabbit-a$$ed minds...

[c1rodz]

Good for you Exxon and Conoco for not giving in to this communist-socialist controlling jerk. He has enough billions he has bilked while his people are suffering. He was elected because three times because hello the elections were fixed!! People have no rights like we do. Speak against him and you die. At least we can moan about our problems and not fear for ourselves.

[ianlou]

Yup. Even the Chinese Communist Party got elected. Every time.
No dispute about that.
If you do, they just kill you.
Posted by pwrslm at 10:55 PM : Jun 26, 2007

For those of you critisizing the evil that is China, will you use the otherside of your mouth to defend the current US trade practices with that country? China scares the hell out of me.

[ianlou]

Chavez has been elected by the Venezuelan people three times.
Posted by ianlou
Yup. Even the Chinese Communist Party got elected. Every time.
No dispute about that.
If you do, they just kill you.
Posted by pwrslm at 10:55 PM : Jun 26, 2007

Just because some of us in the USA hate him, doen't mean the people of his own country hates him - don't assume. I haven't been there, have you? Or are you taking Rush's word for it.

[rushman71]

FeelFree1: Oh, and by the way, if you don't like the "freedom" that we already have here in the US, why don't you try out the "freedom" they have down there. Then and only then may you have the right to ***** about our "freedom".

[rushman71]

FeelFree1: I bet you just love to brown-nose Chavez, huh? You call that freedom? All I see is the open doorway to a new communist regime...Wake the **** up, idiot!!!

[l8c6]

Chavez has his problems for sure but we have diabolical corrupt evil people right here in the United States. Why is it the people of this country think our leaders and our multinational corporate dictators can do no wrong? This trust in the devils who hide behind the U.S. flag is simply delusional.

[l8c6]

pwrslm

You may be right but my faith and trust do not reside with the multinational private interests of the top executives of Exxon & ConocoPhillips among other huge privatized deregulated oil companies and their largest shareholders. I cannot imagine why you seem to unless you are the dictator.

[feelfree1]

Thank you to our commendable friends in Veneluela, Bolivia, and elsewhere, for keeping the idea of freedom and dignity alive in America... South America, that is. You are an inspiration. Hopefully we in the North will soon follow your example, and regain control of our own government.

Again, for those who have not seen it:

'The Revolution Will Not Be Televised', is available on 'google video'.

Here is a shortened URL for this film:

http://tinyurl.com/m8kkw

...or, look it up on the web.

This is a very exiting and informative documentary!

Don't miss it!

[pwrslm]

Next, this guy will sieze all of the food industry. The real name of these actions is communism. Every step closer to the ultimate socialist state is another nail of communism.

While all you folks squeal and whine about Bush fighting terrorism, a little nazi rises in the south, filled with enough hatred for a dozen bin Ladens.

[pwrslm]

Chavez has been elected by the Venezuelan people three times.
Posted by ianlou

Yup. Even the Chinese Communist Party got elected. Every time.

No dispute about that.

If you do, they just kill you.

[cattlekate]

Why in the world won't he let in 75% PSA's?

[jimc52]

Chavez is a nut case...and a would-be Castro. I wonder who did him wrong when he was a boy that he should grow up to be such a beligerant and bombastic parinoid. He sort of looks like Sadam Husein in the picture there...is that who he is trying to mimic? All he needs is the mustache.
I wouldn't waste my P*I*S*S on his country let alone invade it. He's nothing but a two-bit tinhorn tyrant with a Hitlerian dream of being "The Leader." I guess he doesn't realize what a fool he looks like because he would probably kill anyone who told him. What a nut case.

[notblue]

Sadam was elected by the Iraqi's everytime with not a single vote going to the opposition. ianlou,what's your point?

[ianlou]

As soon as the Venezuelan people realize en masse that Chavez is the one ruining their country and destroying their lives, they will have his head on a pike - and then democracy will again have a chance in their country.
Posted by One_American at 03:41 PM : Jun 26, 2007


Chavez has been elected by the Venezuelan people three times.

[agnim]

Good for you, Venezuela.
Now use your oil monies to improve the quality of life of Venezuelans.

Greedy companies officials like those of Exxon aren't satisfied unless they are gouging consumers while making mafia-style profits.

China was not allowed to buy US oil company because of US wanted rightly to protect its assets from foreign hands.
Venezuela is following US lead for the good of Venezuelans.

Now let's see we negotiate a fair market price so that the Venezuelans can also benefit from THEIR resources.

All those who would be against the Venezuelans for doing right by their people with THEIR RESOURCES, as we Americans do all the time, are little more than common thieves.

[roach9703]

Now today we can say NO NO Nanette. We can't let the CIA get involved with Chavez. Ask St Jimmy.

[ajmarine1]

I believe the boycott is having an impact.

Posted by infidel_us at 04:06 PM : Jun 26, 2007

I hope.

[infidel_us]

I pass up a CITGO station on my way to work. It always appears to be devoid of customers. Other stations around it are not. I believe the boycott is having an impact.

[infidel_us]

He wore a raspberry beret!!!!! :) Let's just off this guy and be done with him.