PDVSA begins Sincor’s nationalization

abarrelfull wrote on 05 Feb 2014 13:39
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14-03-2007

Petroleos de Venezuela (PDVSA), through Corporacion Venezolana de Petroleo (CVP), began negotiations with the French company Total and the Norwegian company Statoil by installing the last Transition Committee corresponding to the Sincor Association Agreement, which will allow its full migration to a joint venture company.

The president of Corporacion Venezolana de Petroleo, Eulogio Del Pino, was in charge of creating the committee. Del Pino explained that by carrying out this process they seek to effectively transfer all systems operated by transnational companies to PDVSA, and to achieve the synergy necessary to guarantee Sincor’s operational, financial and commercial continuity.

In the same fashion, Del Pino explained that labor guarantees and rights of Sincor workers and of other association agreements in the Oil Belt will be in full force, both during the transition process and in the future joint venture company in which PDVSA will be the majority shareholder. Similarly, workers of the contractual payroll will benefit when they are incorporated as PDVSA employees, ending the discrimination they endured before nationalization.

As a result of the activities carried out by the Transition Committee, a work schedule will be produced and will end on May 1, with the signing of the transition compliance memorandum and the understanding commitment between PDVSA and its partners. Subsequently, it is expected that the creation of the joint venture companies corresponding to each association agreement will end on June 26, so that they can be later presented to the National Assembly.

Del Pino highlighted the work done to carry out such process, which is preceded by the incorporation of 21 joint venture companies from the old 32 operating agreements. He assured that laws will be enforced to guarantee labor stability and the continuity of operations in the Orinoco Oil Belt, in which we will be partners and majority shareholders after the transition finishes.

• PDVSA begins Sincor’s nationalization

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