"Non-monopoly" oil firms safe from seizure-Venezuela

Venezuela has “no reason” to nationalize foreign oil well drilling service companies that are not “monopolistic”, in contrast to gas and water injection projects seized last month, the country’s oil minister said on Thursday.

Rafael Ramirez said oil well service operations, such as drilling rigs run by Halliburton Co (HAL.N), Schlumberger Ltd (SLB.N) and Baker Hughes (BHI.N), did not fall under the specific terms of reference of the law that nationalized the gas and water injection units recently taken over.
Last month, President Hugo Chavez ordered the takeover of a gas injection project in Venezuela owned by Williams Companies Inc (WMB.N), along with a smaller water injection operation, both used to enhance output from oil fields.

Clarifying the move, Ramirez said that while these gas injection operations and other Lake Maracaibo oil service activities seized were “monopolistic” in character, drilling services could be contracted freely from one company or another.

Nevertheless, Venezuela’s latest oil service company nationalizations, following the takeover by the government of mammoth heavy oil projects in 2007, have stoked fears of more government seizures in the strategic oil industry.

Reuters