The Government nationalizes the fields in the Orinoco Oil Belt

abarrelfullabarrelfull wrote on 05 Feb 2014 13:07

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In his program “Aló, Presidente” number 268, the Head of the Venezuelan State, Hugo Chávez Frías, signed the Decree having the rank, value and force of law for the migration to mixed companies of the association agreements in the Orinoco Oil Belt, as well as the shared risk and profit exploration agreements.
«This was the last trace that remained of the nefarious oil opening. It is addressed to strategic associations », stated the Head of State.

For this reason, he read Article 1 of the decree, which he characterized as medullar: «The existing associations, between subsidiaries of Petróleos de Venezuela S.A (PDVSA) and the private sector, that operate in the Orinoco Oil Belt and the so-called shared risk and profit associations, must adjust to the legal framework that governs the national oil industry, and must become mixed companies within the terms set forth in the Organic Law on Hydrocarbons.»
The President explained that these are mixed companies, and that most of their shares should be owned by PDVSA, not by transnational companies.

«We are recovering the ownership and management of these strategic areas. The privatization of oil in Venezuela is over. This was the last space that was pending for us to recover. This is the true nationalization of oil. The oil belongs to all Venezuelans,» Chávez affirmed.

He also said that he would appoint transition commissions to “hoist”, next May 1, the National Flag in all the fields that had been granted by the fourth Republic to transnational companies.»

«We do not want these companies to go away, but to remain as minority partners. The owner will be PDVSA and the business will be in the hands of Venezuelans,» he stated.

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