BBC NEWS | Venezuela gives Exxon ultimatum

Venezuela has given the world's biggest oil company, Exxon/Mobil, until the end of this year to enter a joint venture with the state.

Failure to do so will almost certainly result in Exxon losing its oil field concessions in the country.

Venezuela's socialist government has now signed new agreements with almost all foreign petroleum companies.

After months of pressure from left- wing leader Hugo Chavez most foreign oil firms working there have caved in.

They have agreed to hand over a controlling stake of their oil interests to the Venezuelan state.

This means that Venezuela now calls the shots in what the foreign guests can and cannot do.

In addition, the companies which have signed the new contracts - such as Chevron, BP, Shell and Total - will in future be presented with much higher tax bills by the government.

But Venezuela says it is only fair that the foreigners are made to pay up as they have got away lightly in the past.

Much of the oil revenue in Venezuela goes into social projects in shanty towns and poor rural areas.

But the US oil giant, ExxonMobil, is digging in its heels and is so far refusing to agree to the terms of the new deal.

Exxon risks losing Venezuelan operations if it fails to comply.

There is growing unease among foreign energy companies based Latin America that they may be forced to become junior partners by a string of left wing governments.

(Oh, boo-fucking-hoo. ed.)

So this is outrageous -- how DARE they elect the leaders THEY want instead of the ones WE want?

How DARE they decide that THEIR natural resources belong to THEM?

How DARE they demand that foreign companies pay for depleting those natural resources?

(Only important fact here -- Venezuela may not have the LARGEST oil reserves in the world, bigger even than Saudi Arabia -- too hard to do an accurate count -- but then again, they may. Get it?)

Since sending troops into Venezuela would be even less likely to succeed than in Iraq, can we expect this administration to do a Salvador Allende on Sr. Chavez?

(Hmm, let's see -- The primary players in the murder of THAT elected president were pretty much the same players we have now -- Cheney, Rumsfeld, Negroponte, Poindexter, etc -- and we KNOW they haven't come up with any new ideas since Grant took Richmond, in fact, they're trying to take the country's social programs BACK to Reconstruction --- they may.

Although -- didn't they actually try earlier this year and botch it?


eXTReMe Tracker