Venezuela Fines Conoco Phillips $465M for Not Signing Away Refineries

Venezuela said Friday it had levied the largest tax bill in the nation’s history on an oil project led by ConocoPhillips, the lone holdout in President Hugo Chavez’s oil nationalization crusade.

The move comes only days after the nation’s energy minister said Venezuela is in “conflict” with Conoco over its refusal to sign an accord recognizing the OPEC nation’s takeover of four multibillion dollar Orinoco heavy crude projects on May 1.

Venezuela’s Hugo Chavez is taking over control of one of the world’s most lucrative oil deposits. CNN’s Jim Boulden reports. (May 1)
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The Seniat tax authority said in a statement it had hit the Petrozuata oil project, 50.1 percent owned by ConocoPhillips (Charts, Fortune 500), with a tax claim of more than $465 million.

It also slapped a $79.5 million claim on the Hamaca project, 40 percent owned by ConocoPhillips and 30 percent owned by Chevron (Charts, Fortune 500), which has been the most optimistic of the Orinoco companies about reaching a takeover deal.

ConocoPhillips did not immediately respond to requests for comment from either its Venezuelan or U.S. headquarters.

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