Venezuela threatens no oil takeover compensation

Venezuela threatened on Tuesday not to compensate some foreign oil companies in its planned takeover of their multibillion-dollar projects in the OPEC nation’s vast Orinoco reserve.

The warning from the oil minister intensified the pressure the leftist government of President Hugo Chavez has exerted on some of the world’s largest companies as they negotiate before a June deadline over the nationalizations.
Companies whose investments are targeted for takeover in the reserve of tarry crude are Chevron Corp., Exxon Mobil, Conoco Phillips, Norway’s Statoil, BP Plc and France’s Total.

Oil minister Rafael
Ramirez said most of the companies were willing to stay on after the government takes a majority stake in the four heavy crude upgrader projects that are valued at more than $30 billion and can produce 600,000 barrels per day.

Industry analysts also expect most companies to work out a way of remaining because Orinoco is one of the world’s largest reserves and high oil prices allow them to return profits despite their sometimes harsh treatment by Chavez.

Scotsman