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BUSINESS: Chavez Tells Oil Companies to Change Contracts or Get Out

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posted on Oct, 3 2005 @ 02:53 AM
Venezuelan President Hugo Chavez warned oil companies holding operating contracts in the OPEC nation, that they must change the contracts to make them comply with the new laws or give up their oil projects.
All foreign oil companies with operating contracts to pump oil Venezuela must comply with a new law and agree to form joint ventures with the government, and any that refuse will not be welcome, President Hugo Chavez said.

Speaking Sunday during his weekly radio and TV program, Chavez reiterated that the government would no longer allow oil companies to run oil fields independently under contract.

Oil companies running Venezuela's 32 oil operating agreements must convert their deals into joint ventures with state oil company Petroleos de Venezuela SA, or PDVSA. The state oil company is to have a majority share in all joint ventures with foreign firms.

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This shows you the power and weight an oil rich nation has in regards to transnational corporations, and Chavez is signaling it's payback time. Meanwhile crude oil prices have risen Monday to USD$66.33 a barrel in Asian electronic trading.

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posted on Oct, 3 2005 @ 03:26 AM
A country having a say in the exploitation of its national resources, fancy that. What a novel idea that a corporation cannot run roughshod over an entire nation in its eternal quest for profit. Mccarthy would be spinning in his grave with how blatantly commie Venezuela is becoming.

posted on Oct, 3 2005 @ 06:45 PM
Another monkey wrench Chavez is throwing into the Petrodollar machine:

Venezuelan President Hugo Chavez has reportedly moved his country’s monetary reserves out of Treasuries and over to Europe where presumably they reside in euro-denominated instruments of some sort.

Moving assets from dollars to euros or gold is a way of launching a bloodless but fairly effective attack on the United States which routinely spends a great deal more than it takes in from taxes and other revenue sources. freemarketnews

If the dollar becomes increasingly less linked to crude prices, your going to see some serious hyper-inflation.

[edit on 3-10-2005 by Regenmacher]


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