Venezuela moves on petrochemical, gas firms

CARACAS (Reuters) – Venezuela is preparing to nationalize petrochemical projects and on Thursday said it seized property of a U.S. gas service company as President Hugo Chavez steps up a drive to put key industries in state hands.

The national assembly is currently reading a proposed law to put all petrochemical activity under state control, affecting Japanese and U.S. companies and extending the list of companies in the oil sector already in government hands.

Venezuela already runs a large petrochemical company Pequiven, owned by state oil company PDVSA. The government is working with Brasil’s Braskem (BRKM5.SA)(BAK.N) to build a chemical plant in Venezuela and another in the northeastern Brazilian city of Salvador.

Separately, state oil company PDVSA said it had taken control of five gas plants belonging to oil and gas service company Exterran (EXH.N) along with its administrative headquarters in the OPEC member nation.

Reuters