Oil companies sign transition pacts with Venezuela

CARACAS, Venezuela – Seventeen oil companies operating in Venezuela on Friday signed accords in the presence of President Hugo Chavez agreeing to convert operating service agreements to state majority joint ventures.

The Chavez administration last year declared the 32 operating agreements illegal as part of efforts to wrest control of the oil industry from private companies.

“Here, 17 businesses — transnational and national — have signed the agreement,” said Chavez. “We are going to work together.”

He said the 32 agreements had been turned into 30 joint ventures or “mixed companies” with state oil giant PDVSA.

Companies that signed the transition accords included oil majors such as U.S. based Chevron, and Spain’s Repsol, as well as smaller companies like Harvest Natural Resources.

Reuters