2nd Coup in the works for Venzeuela ?

[ColdBlooded]

CARACAS, Venezuela - Exxon Mobil Corp. and ConocoPhillips refused to sign deals by a deadline Tuesday that would enable them to keep pumping oil under tougher terms in Venezuela, the nation's oil minister said.

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But the government signed deals with four other major oil companies involved in oil ventures in the Orinoco River region — U.S.-based Chevron Corp.; Britain's BP PLC, France's Total SA and Norway's Statoil ASA.

Analysts said they did not think the refusal of the two companies to sign new deals would have a major impact on supplies from the region as others would likely step in.

An official at Houston-based ConocoPhillips, the largest private oil producer in the region, said earlier Tuesday that it would not sign by the deadline set by President Hugo Chavez's government.

Oil Minister Rafael Ramirez had warned that foreign oil companies that resist the new deals would be expelled from Venezuela.

In his speech at the signing ceremony, Ramirez said that by not agreeing with the government's new terms, "Exxon Mobil and ConocoPhillips end their participation in the businesses" of the Orinoco as well as other Venezuelan exploration activities.

He thanked the companies that agreed to the new terms, saying that with their signatures they are working toward a "secure future" in Venezuela. He also said the deals will bring greater benefit to Venezuelans and are in keeping with "the will of our people."

Petroleos de Venezuela SA, also known as PDVSA, said it was taking ownership of ConocoPhillip's 50.1 percent stake in the Petrozuata project, as well as the La Ceiba block currently under development near western Lake Maracaibo that is 50 percent owned by Exxon Mobil.

"On the basis of the negotiations conducted, the former strategic association Petrozuata and the La Ceiba ... block pass to the total control of PDVSA," the state-owned oil company's statement said.

PDVSA's stakes in the other four Orinoco joint ventures will rise to an average of 78 percent, from previous government stakes ranging from 30 percent to 49.9 percent, the state company said.

The major international companies have invested more than $17 billion in the Orinoco projects overall.

Chavez's government already took over operational control of Venezuela's last privately run oil fields on May 1 as part of its nationalization drive.

ConocoPhillips has been the most exposed: it is involved in two of the four projects and is the single largest private oil producer in the Orinoco, with its share of production equal to about 128,000 barrels a day.

ConocoPhillips is the third-largest U.S. oil company, and its Venezuelan projects account for about 4 percent of the company's daily global oil and natural gas production. Its other Venezuelan interests include developing the Corocoro offshore oil field and oil exploration activities in the Gulf of Paria and Plataforma Deltana.

Oil analysts don't expect ConocoPhillips' decision to have any impact on world oil supplies or prices. That's because energy traders don't see any one company's presence in Venezuela as having a big effect on overall production from the South American nation.

"It's not going to result in any less crude coming out of there," said Kevin Saville, managing editor for the Americas energy desk at Platts, the energy research arm of the McGraw-Hill Cos.

Oil production lost to ConocoPhillips or any other oil major will shift to someone else, said James Cordier, president of Liberty Trading Group in Tampa, Florida.

"Before everyone walks out, a deal will be struck and production there will continue," Cordier said.

Venezuela has claimed that foreign oil companies owe billions of dollars in back taxes related to oil projects.

ConocoPhillips shares fell $2.05, or 2,6 percent, to $75.99 in afternoon trading, while Exxon Mobil fell 20 cents to $82.17.

___

Associated Press writers John Porretto in Houston, John Wilen in New York, Louise Nordstrom in Stockholm, Sweden, and Angela Doland in Paris contributed to this report.

 

[ColdBlooded]

Be ready for guerrilla war against the US, Chávez tells army

· Venezuelan forces told to prepare for invasion
· Speech before trip to conclude air defence deal

Rory Carroll in Caracas
Tuesday June 26, 2007
The Guardian




President Hugo Chávez has ordered Venezuela's armed forces to prepare for a guerrilla war against the United States, saying there must be a strategy to defeat the superpower if it invades.

He said Washington had already launched a non-military campaign using economic, psychological and political means to topple his socialist government and seize control of Venezuela's vast oil reserves.

"We must continue developing the resistance war, that's the anti-imperialist weapon. We must think and prepare for the resistance war every day," the president told hundreds of soldiers assembled at Tiuna Fort, a military base in the capital Caracas, on Sunday.

Wearing an olive-green uniform, red beret and presidential sash, Mr Chávez said Venezuela was locked in "asymmetrical warfare" with the US and that, if it led to combat, soldiers must be prepared to lay down their lives.
"It's not just armed warfare, I'm also referring to psychological warfare, media warfare, political warfare, economic warfare," he said.

There was no immediate response from Washington, but the Bush administration has rejected previous claims that it was plotting to attack its outspoken South American foe.

Mr Chávez's speech came on the eve of a trip to Russia, Belarus and Iran, hosts who share much of his antipathy towards Washington.

He said that while in Minsk he would put "the final touches" to a deal to buy an air defence system with long-range radar and missiles and in Moscow he would discuss the possible purchase of submarines.

Venezuela has recently purchased £1.5bn worth of Russian weapons including 53 military helicopters, 24 SU-30 Sukhoi fighter jets and 100,000 Kalashnikov assault rifles.

Mr Chávez stressed the build-up was a deterrent. "We are strengthening Venezuela's military power precisely to avoid imperial aggressions and assure peace, not to attack anybody."

The air system was purely defensive, he said. "But if somebody comes here, well then, ssssssshhh," he said, imitating the sound of a missile.

The former paratrooper said US dirty tricks were evident in the student-led protests which greeted his decision last month not to renew the licence of RCTV, an opposition-aligned television station. He also said Washington was trying to sabotage the Copa America, a pan-regional football tournament which Venezuela is due to host over the coming weeks.

The Bush administration tacitly backed a coup that briefly ousted Mr Chávez in 2002 and has made no secret of its distaste for a leader who has thrown an economic lifeline to Fidel Castro's Cuba.

Mr Chávez claimed there have been numerous US-sponsored attempts on his life since the coup, but he has not provided details.

 

[2-0-Sixx]

Thanks for the info.

 

[JoMoDo]

The first article sounds like a text book example of capitalistic free market.

Regarding the 2nd article, there is slim to none chance of us going into Venezuela, IMO, its probably about number 4-5 on the US's 'foreign policy oh shit list)Bush will be out of office in less then the next 2 years, and Chavez will continue to do business with Bush's oil tycoon buddies long after he's outta office, he'll continue to run off the dr's, lawyers, educators, and maintain his 'socialist' ideals as long as Venezuela's oil pipeline continues to pump petro.