PDVSA inks final joint venture agreements http://today.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?view=CN&storyID=2006-07-20T164906Z_01_N2020772_RTRIDST_0_ENERGY-VENEZUELA-AGREEMENTS.XML&rpc=66
Thu Jul 20, 2006
CARACAS, Venezuela, July 20 (Reuters) - Venezuelan state oil company PDVSA said on Thursday it had completed a joint venture agreement with Brazilian energy company Petrobras (PETR4.SA: Quote, Profile, Research), following similar accords with Royal Dutch Shell (RDSa.L: Quote, Profile, Research) and Chevron (CVX.N: Quote, Profile, Research).
Venezuela this year completed a process of converting subcontracting agreements to joint ventures with PDVSA the majority partner as part of President Hugo Chavez' efforts to increase control over energy resources in the world's No. 5 oil exporter.
PDVSA subsidiary CVP said in a press release it signed a final accord with Petrobras to create the Petrowayu joint venture, which will operate the 12,300 barrel per day La Concepcion field in western Venezuela. Energy authorities declared the subcontracting deals illegal last year and ordered private and foreign companies to convert operations to state-majority joint ventures known as "mixed companies."
Most of the companies running the 32 oil field operations agreed to the structure, though PDVSA seized fields from France's Total (TOTF.PA: Quote, Profile, Research) and Italy's Eni (ENI.MI: Quote, Profile, Research) after negotiations fell through.
PDVSA last week completed a deal with Shell for a mixed company to run the 45,000 bpd Urdaneta West field. PDVSA also signed final agreements with Chevron for two mixed companies to operate the 115,000 bpd Boscan field and the 8,000 bpd LL-652 field.
Venezuela has been at the forefront of widespread efforts across Latin America to increase control over natural resources and boost tax payments by foreign companies.
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