Update on Hugo vs the oil companies

uscitizen

uscitizen

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Chavez OKs private firms in oil projects

By NATALIE OBIKO PEARSON
AP Business Writer

CARACAS, Venezuela (AP) -- President Hugo Chavez said Saturday his government will allow private companies to own minority stakes in lucrative Orinoco River basin oil projects that Venezuela plans to nationalize.

Chavez announced plans earlier this week for the state to take control of the country's largest telecommunications company, its electricity and natural gas sectors and four heavy crude upgrading projects now controlled by some of the world's top oil companies.

It had not been clear whether Chavez intended for the state to have total control of the projects or a majority stake as his government had previously said.

In a speech to congress Saturday, Chavez said the private companies - British Petroleum PLC, Exxon Mobil Corp., Chevron Corp., ConocoPhillips Co., Total SA and Statoil ASA - would be given the option to stay on as minority partners.

"He who wants to stay on as our partner, we'll leave open the possibility to him. He who doesn't want to stay on as a minority partner, hand over the (oil) field and, goodbye," he said.

"Goodbye, good luck and thank you very much," Chavez added in English.

Chavez's government has already taken majority ownership of all other oil-producing operations in the country through joint ventures controlled by the state oil company. Most companies have shown a willingness to continue investing despite the tightening terms, which have also included tax and royalty increases.

http://hosted.ap.org/dynamic/stories/V/VENEZUELA_OIL?SITE=FLPET&SECTION=HOME

Note:
"Most companies have shown a willingness to continue investing despite the tightening terms, which have also included tax and royalty increases."
 
uscitizen said:
Note:
"Most companies have shown a willingness to continue investing despite the tightening terms, which have also included tax and royalty increases."
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Ha ha! True.

I'm interested to see how the telecommunications takeover is going to be. I'm not familiar with it, but do you know what prompted it?
 
I'm really beginning to have a soft spot for ol' Hugo. Yeah, he's basically a grandstanding putz but he sure does rile up the riff raff real good. With a little bit of luck, he may even do some long term good for the people of Venezuela. Probably unintentionally but you can't have everything.
 
OrnotBitwise said:
I'm really beginning to have a soft spot for ol' Hugo. Yeah, he's basically a grandstanding putz but he sure does rile up the riff raff real good. With a little bit of luck, he may even do some long term good for the people of Venezuela. Probably unintentionally but you can't have everything.
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Moi aussi. I hope he makes another visit. I love to see the cons with their pant ies in a bunch.
 
The oil companies should simply destroy anything that they have built down there, leave and let Venezuela go down the proverbial creek.
 
Superfreak said:
The oil companies should simply destroy anything that they have built down there, leave and let Venezuela go down the proverbial creek.
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they won't. they never do anything on principle; only for money. that's whya they have kept on dealing with middle east maniacs all these years. the money is so important that they will even do busines with people who would just as soon shoot them than work with them.
 
Superfreak said:
The oil companies should simply destroy anything that they have built down there, leave and let Venezuela go down the proverbial creek.
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the oil companies are money ho's they won't cut off their nose to spite their face. besides if like in this country they could go to prison for burning state owned facs.
 
HipLew said:
they won't. they never do anything on principle; only for money. that's whya they have kept on dealing with middle east maniacs all these years. the money is so important that they will even do busines with people who would just as soon shoot them than work with them.
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All business bureaucracies are intrinsically amoral. That's exactly why I tend to prefer public sector bureaucracy. It's not much better but it's at least more transparent.

OTOH, business bureaucracies are at least predictable. If they're still making profits then they won't leave. And, I point out, if they're still making profits, where's the beef?
 
LadyT said:
Moi aussi. I hope he makes another visit. I love to see the cons with their pant ies in a bunch.
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The "Bush" communities in Alaska are loving him. They have heat thanks to Hugo, isn't that an embarrassement to Alaska!
 
Oh Alaska with oil is like food in Ethoipa. Plenty of food if you have the money to buy it from the areas of Ethiopia that have it. The problem is a shortage of money for some, not a shortage of product
 
Superfreak said:
The oil companies should simply destroy anything that they have built down there, leave and let Venezuela go down the proverbial creek.
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That's why you'll probably never be allowed to run a business, or be in charge of other people's money. ;)

With something like a hundred billion barrels in proven reserves, venezeula will be producing oil for many decades to come. And chavez won't be around forever. I suspect however, than venzeulan citizens would remember 30 years from now, ExxonMobil employees going on a rampage and destroying infrastructure.
 
President Hugo Chavez said Saturday his government will allow private companies to own minority stakes in lucrative Orinoco River basin oil projects that Venezuela plans to nationalize.


I told Topspin to calm down.
 
You novice's are funnier than the comedy channel. Especially the faux intellectual ornot.
Let me than you ahead of time before your next fill up for your addiction.
And for leaving the lights on and buying a much bigger house than you need.
Venezuala's economy will suffer imensely and their market is already tanking because of this.
 
uscitizen said:
Time will tell Spin, time will tell....
In any case it is their country to run, not ours.
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That's about right. It IS their country. It kinda sucks that they would renegotiate a contract, but this is a common risk in doing business in developing countries. If Chavez scares off all foreign investment, the venezuelan economy will suffer. But, I think he's dumb like a fox: he appears to use a lot of populist and socialist rhetoric, but he still appears to want to keep foreign oil companies as minority partners. I might be wrong, but I don't think he's stupid enough to scare away ALL foreign investment.
 
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We renogiate contracts here all the time. SSI Benefits changes, etc. But i guess since that only effects individuals and not corporations it is ok since corporations are really what our gummit serves now-a-days....
 
HipLew said:
the title of this thread is ....hugo vs. the oil co's. not correct... hugo IS the oil co's!!!
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Well, you know... We are all equal, it's just that some animals are more equal than others... I wonder what his meals are like compared to those in the slum areas of his city.
 
Damocles said:
Well, you know... We are all equal, it's just that some animals are more equal than others... I wonder what his meals are like compared to those in the slum areas of his city.
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One can make the same comparisons between school lunches and GWB's lunch :D
Open wide Damo, I am sure you can fit both feet in there on this one ;)
 
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