Venezuela says will pay for nationalized H&P rigs

[cory777]

Source: Reuters

Reuters) - Venezuela will pay Helmerich and Payne for a fleet of oil rigs it seized from the U.S. company, the oil minister said on Saturday, warning that five drills at a Chevron venture were also at risk of nationalization.

Oil Minister Rafael Ramirez announced this week that OPEC member Venezuela was nationalizing 11 rigs belonging to Helmerich and Payne following a year-long dispute over pending payments by state oil company PDVSA.

"Here we pay book value," Ramirez said. "A process begins by which we establish fair price between the two parties."

Socialist President Hugo Chavez has nationalized most of Venezuela's oil industry, starting with major heavy-crude projects worth billions of dollars in 2007, then taking over dozens of smaller service companies last year.

Read more: http://www.reuters.com/article/idUSTRE65Q0GM20100627?feedType=RSS&feedName=businessNews&rpc=6&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FbusinessNews+%28News+%2F+US+%2F+Business+News%29

[Wilms]

1. In other words, the corporations don't control the government.

Obama could learn a thing or two from Chavez.

[cstanleytech]

2. Except in our case Obama lacks as much power as

Chavez wields and frankly I like it that way, after all imagine how much worse things could be for us if Bush had had the power to cease property and or distribute it as he saw fit.
As for corporations controlling the government the rich and powerful have always done that.

[Wilms]

4. Those corps held VZ hostage.

Like the banks and insurance corps hold us.

[Judi Lynn]

5. Both presidents have the power to operate according to their countries' laws.

Please be good enough to show how the President of the U.S.A. lacks the power of the President of Venezuela.

Please be good enough to explain what it is you're attempting to say, and give credible sources. As it stands, your comment makes absolutely no sense whatever.

"The rich and powerful" are not the masters in a democracy, as you know. Attempts to claim "they've always done that" are pointless and feeble.

[cowman]

21. The Pres of the US

cannot just nationalize anything without the consent of congress, I'm not sure how it works in VZ, but from reading the news it seems that Pres. Chavez can do it unilaterally. If I'm wrong I apologize

[Judi Lynn]

23. The power to nationalize, or re-nationalize is granted to Venezuela's President

during specific times Veneuela's national assembly gives him to accomplish the goals he promised duriing his Presidential campaign.

I found a quick reference in Wiki:

On 8 January 2007 President Chávez installed a new cabinet, replacing most of the ministers. Jorge Rodríguez was designated the new Vice President, replacing José Vicente Rangel. Chávez announced that he will send to the National Assembly a new enabling act, asking for the authority to re-nationalize the biggest phone company of the country (Cantv), and other companies from the electrical sector, all previously public companies which were privatized by past administrations. He also asked to eliminate the autonomy of the Central Bank.<119>

On 31 January 2007 the Venezuelan National Assembly approved an enabling act granting Chávez the power to rule by decree in certain areas for 18 months. He plans to continue his Bolivarian Revolution, enacting economic and social changes. He has said he wants to nationalize key sectors of the economy.<120><121> Chávez, who is beginning a fresh six-year term, says the legislation will be the start of a new era of "maximum revolution" during which he will consolidate Venezuela's transformation into a socialist society. A few critics, however, are calling it a radical lurch toward authoritarianism by a leader with unchecked power.<122><123>

On 8 February 2007 the Venezuelan government signed an agreement to buy an 82.14% stake in Electricidad de Caracas from AES Corporation. Paul Hanrahan, president and CEO of AES said the deal has been a fair process that respected the rights of investors.<124> In February 2007, the Venezuelan government bought a 28.5% stake of the shares of CANTV from Verizon Communications.<125>

On 30 April 2007 Chávez announced that Venezuela would be formally pulling out of the International Monetary Fund (IMF) and the World Bank, having paid off its debts five years ahead of schedule and so saving US $8 million.<126> The debt was US $3 billion in 1999.<127> Chávez then announced the creation of a regional bank, the Bank of the South, and said that the IMF and the World Bank were in crisis.<128>

The next day he announced intentions to re-take control of oil projects in the Orinoco Belt, which he said are "the world's largest crude reserve."<129> These reserves, which can be exploited with modern technologies, may place Venezuela ahead of Saudi Arabia in terms of oil reserves.<130>

http://en.wikipedia.org/wiki/Presidency_of_Hugo_Ch%C3%A1vez

I would hope you are aware Venezuela's big industry, as in steel and oil, was all nationalized long, LONG ago, and remained nationalized except for a brief, and violent period not long before Hugo Chavez was sworn into office in February, 1999.

[sulphurdunn]

10. That needs to change.

[Larry Ogg]

12. I think Obama's world view is more pro-elitest than subjective

In other words, IMHO, Obama knows the difference between the ideologies of capitalism and socialism, so he has nothing to learn from Chavez, and as long as he receives the benefit of the doubt from his supporters, the elite capitalist have nothing to worry about.

[Braulio]

16. Chavez is destroying Venezuela's economy

The last thing we need is anybody here listening to Chavez.

[Judi Lynn]

24. DU posters are expected to do their own reading, and make up their own minds,

and your announcing how DU members should think, or to whom they may listen is clearly out of line.

[paulk]

25. but it's ok when you do it...

LOL!

[Judi Lynn]

26. You are trying to attack me without foundation.

Your hostility led you to plunge directly into a baseless claim.

Please review the poster's remark, if it's not too much effort:"The last thing we need is anybody here listening to Chavez."

[paulk]

27. you've been posting here for eight years

you're always telling other people how they should think

it's practically your calling card


just pointing out the irony in your post...

[Wilms]

31. Actually, Judy provides material so one CAN think critically.

Big difference.

[Catherina]

34. You're not pointing anything out, just making baseless accusations. Lame n/t

[Commie Pinko Dirtbag]

36. Uh-oh.

[Braulio]

30. Out of line?

The last thing we need here in the USA is for our politicians to listen to Chavez. Get it? Chavez is a dictator, and he isn't even a good dictator, he is ruining his country's economy. So we REALLY don't need for anybody in our government, or our politicians to listen to Chavez. The guy's a loser. And if you think it's out of line to say that our politicians don't need to listen to what the guy says, then that's up to you. But I'm not worried, everybody here, except for Oliver Stone, seems to agree, Chavez isn't a good example - he can't even be said to be a good example for other dictators, because he can't even run his country properly in spite of having all that oil money he gets.

[Catherina]

35. "everybody here"? I suggest you stick around and get a little more exposure if you can.

And what's all this "we" shit? "We" nothing. Get it?

[yurbud]

28. I have a feeling if Obama did likewise his corporate friends would give him a very bad day

like Kennedy.

[Goldstein1984]

3. The difference between the US and Venezuela is...

Hugo Chavez gets his power from the people and is challenging the plutocrats.

American presidents do it the other way around.

Chavez...Morales...Correa...

I hope the People's movement in Latin America spreads.

[Braulio]

17. The difference between the US and Venezuela is....

US has a much lower crime rate
The US economy is growing, Venezuela's in shrinking
US has a mild inflation rate, Venezuela's is about 30 %
In the US there's a fairly efficient judicial system, in Venezuela it barely works
In the US, we have pretty decent medical care, it's going to get better with the new law, in Venezuela medical care is lousy
In the US, private property is fairly well protected, in Venezuela it isn't
In the US, we have a President who reacts when there's an oil spill, right now there's an oil spill going on in Venezuela, and the President hasn't even mentioned it.

There are many other differences, overall, if I give Obama a B for his performance, I would have to give Chavez an F ---

[Goldstein1984]

22. Venezuela suffers from 500 years of oppression

The US benefited from that oppression. The US continues to support such oppression (e.g. standing behind a business-backed military coup in Honduras). We have military bases next door to Venezuela.

When I worked for Williams Energy in 2002, we were embarrassed to discover that our company's leadership backed the U.S. government backed coup attempt against Chavez.

Property rights in Venezuela are tenuous if you're a corporation exploiting workers.

I doubt the unemployed, the foreclosed, the homeless, and the working poor would agree with your rosy assessment of the situation in the U.S.

[davidinalameda]

29. Castro?

[dipsydoodle]

6. k & r

.

[me b zola]

7. K&R

[RedCloud]

8. More oil company lies! Venezuela already "nationalized" its oil!

Venezuela benefited from the oil boom of the early 1970s. In 1974, President Carlos Andrés Pérez took office, and in 1976 Venezuela nationalized foreign-owned oil and steel companies, offering compensation.

http://www.infoplease.com/ipa/A0108140.html

So they just took one billion dollars back in 1976 as a gratuity?

[Braulio]

18. That's not the way it works

Venezuela nationalized the oil companies (the oil producers), it didn't nationalize the service sector (the rigs, the huge number of companies providing services were largely kept in private hands). After the nationalization in the 1970's, they went on to give service contracts to private oil companies, starting in early 1990. They also signed association agreements which allowed oil companies to invest in heavy oil developments. What the Chavez regime did was eliminate the service agreements, and give the oil companies ownership of shares in companies (PDVSA branches) which in turn have licenses to exploit the oil fields. In the service sector area, he has given haphazard orders to nationalize SERVICE companies to avoid paying them.

This nationalization of service companies is driven by PDVSA's lack of money to pay its bills, because it owes billions of dollars, and at the same time its bonds are rated at nearly junk status, which means they have to pay about 14 % interest when they borrow. PDV and the Venezuelan government are in a dead end street, production is going down, their debt rating is lousy, they lack the technical skills to work their oil fields, and they are slowly killing off the private service sector. It's going to be interesting to see how they destroy the economy. And this is really going to help Colombia, because Venezuela's help for the FARC is going to disappear, they are going to be a basket case, with people starting to starve as early as next year.

[COLGATE4]

19. K&R!

[SemperEadem]

9. that's how you do it

this is what should have been done to BP the first moment they balked at their responsibility.

[sulphurdunn]

11. The American Revolution

was not fought against the tyranny of British governance. It was fought against the tyranny of British government in the service of private corporations. The only difference today is that the enemy is the tyranny of American government in the service of transnational corporations. and there is no possible armed solution to the problem.

[elocs]

13. Nationalization in this country is a wet dream for those who do not like to deal with reality.

The reality is that Obama is not king, not dictator, not god, and he doesn't remotely have the powers that Chavez does.

The other reality is that you will not see any but the most fringe Democratic politicians ever even talk about nationalization of any major industries. Let Democrats begin to tout nationalization and you will see a stunning revival of the Republican party just as so many were being dismissive of the freepers and the tea partiers and dancing on the grave of the GOP.

Actually I think that for Democrats to call for nationalization is a wet dream for Republicans as well.

[Travis Coates]

14. I can't think of a better way to start a war nt

[Joanne98]

15. Great idea! We should do the same thing to BP!

[elocs]

20. I'm sure the Republicans would love that "we" should do that. Exactly how though?

Exactly how would that not guarantee that the Republicans don't take control of everything in 2012? If that were to happen it would make the Bushco years look like a Sunday School picnic.

[thewiseguy]

32. Vuvuzela will pay for what?

[Judi Lynn]

33. Venezuela Approves Nationalizing 11 Seized Helmerich Oil-Drilling Rigs

Venezuela Approves Nationalizing 11 Seized Helmerich Oil-Drilling Rigs
By Corina Rodriguez Pons and Jose Orozco - Jun 29, 2010

Venezuelan National Assembly lawmakers approved nationalizing 11 oil rigs owned by Helmerich & Payne Inc. after state oil company Petroleos de Venezuela SA accused the U.S. company of a production “boycott.”

“We reviewed the report from the oil ministry and consider the decision pertinent,” Jesus Graterol, president of the congressional energy commission, said today on National Assembly Television. “The opposition wants multinational oil companies to return to Venezuela and we won’t allow it to happen.”

Tulsa, Oklahoma-based Helmerich & Payne said that the rigs were idled after Venezuela stopped paying for oil service activities and accumulated a debt of more than $40 million. Helmerich will be compensated for the rigs, Rafael Ramirez, president of PDVSA, said on June 26.

President Hugo Chavez forced foreign oil producers into joint ventures as minority partners in 2007 and is in international arbitration hearings with the U.S.’s Exxon Mobil Corp. and ConocoPhillips, which rejected revised terms. Last year, PDVSA seized assets from companies including Williams Cos. as it increased state control over oil and gas operations.

Helmerich was “intransigent” in negotiating new fees and was the only company of 33 rig providers to refuse the terms, Ramirez said on June 25. PDVSA workers are guarding the rigs in Anaco, Anzoategui state, he said.

http://www.bloomberg.com/news/2010-06-29/venezuela-approves-nationalizing-11-seized-helmerich-oil-drilling-rigs.html