CARACAS, Venezuela — President Hugo Chavez’s government says it is seizing 14 natural gas compression plants as it moves forward with the takeover of private companies in Venezuela’s oil industry.
Venezuela’s state oil company has taken control of 75 oil contractors amid payment disputes and plunging world oil prices, using a law approved by the largely pro-Chavez National Assembly last month. Chavez’s government now says it will proceed with more takeovers over the next five days, according to a statement Wednesday by Venezuela’s Information Ministry.
The law says nationalized companies could be paid with cash or bonds and the government has agreed to pay those companies involved in some past takeovers.
Those affected include Houston-based gas processor and distributor Exterran Holdings Inc. The company said in a filing with the U.S. Securities and Exchange Commission on Tuesday that state-run Petroleos de Venezuela SA, or PDVSA, began taking over its operations that same day.
Exterran said it had already been affected through the seizure of three joint ventures in which it has minority stakes — including SIMCO consortium, which injects water into oil fields to improve recovery, and two gas plants in eastern Venezuela owned by Williams Cos. Inc., based in Tulsa.
But Tuesday’s seizures represent the first takeover of Exterran’s "wholly owned operations”— which accounted for about 5 percent of the company’s total revenues last year, the company said.
In April, Exterran said it was experiencing long payment delays from PDVSA.
Venezuela’s state oil company has fallen behind on billions of dollars in payments as it aims to cut costs by 40 percent.
PDVSA’s unpaid invoices jumped 145 percent over 2007, to reach $13.9 billion in December, Venezuela’s Energy Ministry reported.
by the associated press
Venezuela’s state oil company has taken control of 75 oil contractors amid payment disputes and plunging world oil prices, using a law approved by the largely pro-Chavez National Assembly last month. Chavez’s government now says it will proceed with more takeovers over the next five days, according to a statement Wednesday by Venezuela’s Information Ministry.
The law says nationalized companies could be paid with cash or bonds and the government has agreed to pay those companies involved in some past takeovers.
Those affected include Houston-based gas processor and distributor Exterran Holdings Inc. The company said in a filing with the U.S. Securities and Exchange Commission on Tuesday that state-run Petroleos de Venezuela SA, or PDVSA, began taking over its operations that same day.
Exterran said it had already been affected through the seizure of three joint ventures in which it has minority stakes — including SIMCO consortium, which injects water into oil fields to improve recovery, and two gas plants in eastern Venezuela owned by Williams Cos. Inc., based in Tulsa.
But Tuesday’s seizures represent the first takeover of Exterran’s "wholly owned operations”— which accounted for about 5 percent of the company’s total revenues last year, the company said.
In April, Exterran said it was experiencing long payment delays from PDVSA.
Venezuela’s state oil company has fallen behind on billions of dollars in payments as it aims to cut costs by 40 percent.
PDVSA’s unpaid invoices jumped 145 percent over 2007, to reach $13.9 billion in December, Venezuela’s Energy Ministry reported.
by the associated press
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