Monday, April 03, 2006

Venezuelan Government Seizes Oil Fields

Continue his trend of nationalizing the oil sector in Venezuela, Hugo Chavez has repossed a group of oil fields from French and Italian corporations. Petroleos de Venezuela SA, the state-owned oil company, had recently demanded that all private firms pumping oil in Venezuela had to share 60% of their profits with PVDSA. ExxonMobile sold off its assets because of the profit sharing measures. Spanish-Argentine Repsol YPF, Royal Dutch Shell PLC, and China National Petroleum have all accepted the new operational terms put forth by the Venezuelan Congress.

PDVSA channels its profits to finance social programs that have benefited 73% of Venezuelan citizens.