Reply #91: Venezuela takes back 7 oil fields from oil companies - oil minister [View All]

[UpInArms]

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BC0201BE0%2D5646%2D435B%2DA022%2D78F4EE94CA3E%7D&dist=newsfinder&symbol=&siteid=mktw

CARACAS (MarketWatch) -- Venezuela has taken back a total of seven oil fields from private companies, five of which were voluntarily returned, after completing negations for a contract overhaul, Oil Minister Rafael Ramirez said Monday.
He said the seven fields produce a total of 115,000 barrels a day.

Ramirez said state oil company Petroleos de Venezuela S.A. (PVZ.YY) has already taken over operations at two oil fields, one operated by Total (TOT) and another by ENI (E), because those firms refused to sign the new contract model. Ramirez, who is also the president of PdVSA, said Venezuela will negotiate compensation for these firms, but will not open additional talks to for them to retain minority stakes in the fields.

"If we opened up an additional window of negotiations," it would show a lack of respect for the companies that signed, said Ramirez.

Total said Monday that it was looking to reach an agreement with PdVSA on the 30,000 b/d Jusepin field that was taken over, while ENI threatened to take legal action. Ramirez expressed confidence that PdVSA would win any legal case brought against it.

"They can take it to the celestial court if they want," said Ramirez.

The other five fields were returned voluntarily, and the firms that used to operate them will be compensated for handing them over, said Ramirez.

...more...