Chavez to nationalize us oil company platforms

Discussion in 'General Discussion' started by Tango3, Jun 25, 2010.

  1. Tango3

    Tango3 Aimless wanderer

    oil to the "peoples":

    <cite class="vcard"> By Frank Jack Daniel Frank Jack Daniel </cite> – <abbr title="2010-06-24T05:36:37-0700" class="timedate">Thu Jun 24, 8:36 am ET</abbr>
    <!-- end .byline --> CARACAS (Reuters) – Venezuela will nationalize a fleet of oil rigs belonging to U.S. company Helmerich and Payne, the latest takeover in a push to socialism as President struggles with lower oil output and a recession.
    A former soldier inspired by Cuba's Fidel Castro, Chavez has made energy nationalization the linchpin in his 'revolution'. He has also taken over assets in telecommunications, power, steel and banking.
    The 11 drilling rigs have been idled for months following a dispute over pending payments by the OPEC state oil company PDVSA. Oil Minister Rafael Ramirez said on Wednesday the rigs, the Oklahoma-based company's entire Venezuelan fleet, were being nationalized to bring them back into production.
    Ramirez said companies that refused to put their rigs into production were part of a plan to weaken ]Chavez's government
    "There is a group of drill owners that has refused to discuss tariffs and services with PDVSA and have preferred to keep this equipment stored for a year," Ramirez told reporters in the oil of Zulia. "That is the specific case with U.S. multinational Helmerich and Payne."
    The company was not immediately available for comment.
    Chavezwho faces legislative elections in September, often pushes ahead with radical plans during election campaigns.
    The 55-year-old leader is having a hard time in his 11th year in power.Venezuela's is the worst performing in Latin America this year, a problem exacerbated by a drop in oil output since 2008, power outages and soaring inflation.
    The takeover of Helmerich and Payne's rigs was not a surprise, considering Chavez penchant for nationalizations and the company's refusal to work before being paid the $49 million it has invoiced PDVSA.
    Helmerich and Payne is a small player in the drilling industry, but global giants like Halliburton, [COLOR=#366388 ! important][COLOR=#366388 ! important]Schlumberger[/COLOR][/COLOR] and Baker Hughes also have a presence in Venezuela.
    Halliburton and Schlumberger have avoided public spats with the government.
    Chavez has kept pressure up on the private sector in recent months, blaming a "parasitic bourgeoisie" for Venezuela's recession and 30 percent annualized inflation,
    He has threatened to nationalize Polar, the top brewer and food processor in the country of 30 million. The government has also seized a bank belonging to an owner of the leadingopposition [ and put an arrest warrant out for his partner, who is now on the run.
    Chavez in 2007 nationalized multi-billion dollar projects in Venezuela's vast Orinoco oil region, persuading companies such as BP Plc, to accept minority stakes in facilities they had built.
    Last year he ordered the takeover of dozens of smaller oil as PDVSA, reeling from a sharp plunge in oil prices, struggled to pay contractors.
    When he was flush with oil cash during a boom in oil prices that ended in 2008, Chavez often compensated nationalized companies fairly, although the 2007 takeovers led to lawsuits fromConocoPhillips and Exxon Mobil.
    More recently Venezuela has been slower in paying compensation.
    (Reporting by Patricia Rondon, editing by Jackie Frank)

    Venezuela to nationalize U.S. firm's oil rigs - Yahoo! News
  2. tacmotusn

    tacmotusn RIP 1/13/21

    sum body assassinante this sum beech. viva la revolution!!!
  3. Brokor

    Brokor Live Free or Cry Moderator Site Supporter+++ Founding Member

    Chavez isn't the problem. Unless you can recognize the corporate control, any amount of blaming the "evil dictator" will only serve to confuse the issue.
  4. ghrit

    ghrit Bad company Administrator Founding Member

    Consider sovereign fund corporations as a lot of countries espouse, and the connection becomes much clearer. Chavez IS the problem in Venezuela.
  5. fortunateson

    fortunateson I hate Illinois Nazis!

    Oh the bitter irony.
    "More recently the state of North Carolina has been slower in paying Fortunateson the income tax refund it owes him."

    Yes. Waiting since mid April. Funny how these tyrannies work in hard times.
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