Venezuela energy clients subject to Chavez whims

CARACAS, Jan 14 (Reuters) – Venezuela’s decision to halt asphalt exports and unilaterally change oil payment terms are new signs that the OPEC nation’s energy deals can at any moment be upended by the whims of leftist President Hugo Chavez.

The former soldier on Sunday said Venezuela would cut all asphalt exports to improve domestic infrastructure, just days after Venezuela announced it was cutting the payment time for oil cargoes to eight days from the industry-standard 30 days.


The announcements follow a barrage of contract changes in recent years as part of Chavez’s energy sector overhaul, and come less than a year after Venezuela pushed Exxon Mobil Corp and ConocoPhillips out of multibillion-dollar oil projects.

“The changes add a great deal of unpredictability to future commercial dealings with Venezuela and make markets uneasy about the sanctity of contracts going forward,” said Patrick Esteruelas, an analyst with Eurasia Group in New York.

Reuters