Posted on 04/28/2007 5:03:55 PM PDT by fella
ConocoPhillips Draws Attention in Defying Venezuela Over Oil Fields by Peter Millard Dow Jones Newswires Friday, April 27, 2007
CARACAS Apr 27, 2007 (Dow Jones Newswires) ConocoPhillips (COP) raised eyebrows in Venezuela this week by skipping an event where it could have signed over the rights to run its local oil operations to state-owned oil firm Petroleos de Venezuela SA, or PdVSA.
Industry watchers said the slight could mean Conoco is preparing for a legal battle if new contract terms offered in Venezuela's ongoing oil nationalization don't meet the firm's expectations.
Even if Conoco caves in before Tuesday's deadline for relinquishing operational control, the incident puts it on shaky ground heading toward a June 26 deadline for handing over actual shares in the oil ventures. PdVSA is demanding a minimum 60% stake in four projects, currently owned by private-sector companies, that pump and upgrade tar oil from the Orinoco river basin.
Houston-based ConocoPhillips has more at stake in Venezuela than any other foreign firm, with majority stakes in two of the four Orinoco deals, Hamaca and Petrozuata, and stakes in two untapped conventional oil fields in the Gulf of Paria. Nearly 10% of Conoco's total reserves are estimated to lie in the OPEC nation.
"Conoco is taking a stand that they don't want to agree to anything," said Miguel Octavio, an analyst at Caracas-based BBO Servicios Financieros who tracks the four Orinoco projects.
(Excerpt) Read more at rigzone.com ...
This might be a good time for some Wyatt’s Torching.
Too bad they can’t destroy the oil fields and wells before they are forced out & they will be forced out IMO.
That would be stupid. They can just sue Venezuela in the US courts, and seize their bank accounts and other assets here.
Conoco only has two days to hand over operations. It sounds like they have no intention of doing so. The Communist thugs will, of course, show up with superior firepower after that date. They have done it before.
Companies are fleeing Venezuela as fast as they can get their assets out. The sad thing is that no company will want to invest in any South American country. One wrong election and you lose everything.
That would definately be interesting.
My first thought too!!
Jack
We’re talking about an investment of billions of dollars. I doubt Venezuela has that amount of money in US accounts; if so, it would be the target of many competing claims, and no party would actually get the cash for many years.
In any case, the proposal to torch the wells is not intended a remedy for the nationalization of ConocoPhillips’ property, which is already a fait accompli. It’s the right thing to do as and in itself, because the dictatorship should not benefit - and be allowed to perpetuate itself - from the theft of ConocoPhillips’ property.
I’d like to see Conoco burn their stuff to the ground before telling the Chavez..”here ya go partner!”
All they have to do is destroy all the computers that run the operation. That shouldn’t take long.
Yeah...like that's gonna happen.
What do you suppose their Lake Charles, Corpus Christi, Lemont, Paulsboro and Savannah Refineries are worth?
Perhaps Conoco should prepare for other type's of battle as well.....
Not saying that Conoco hire a group of mercinaries, then drop large $$ on funding state of the art weapons for those hired guns - or anything like that...cough, cough.....
At the very least, Conoco should let the pea brained tyrant know that any attempt to physcially take a well / platform, deny export of product, any action that violates the in-place agreement, etc., will result in the immediate destruction of said facility.
Play hardball.
What is Citgo worth?
I know they have been trying to sell the Citgo refinery to try to get that money out of the US before the asset could be seized in response to their seizures of assets there. Perhaps the transfer could be set aside, and anyone who has helped them liquidate assets and move money out of the US could be left holding the bag.
That’s a perfect solution.
What is Citgo worth?
Not even one of my dimes.
Venezuela proper may not. But Petroleos de Venezuela SA almost certainly does.
They own Citgo.
It would be a simple -- and totally appropriate -- act to expropriate Citgo's assets and award them to Conoco-Phillips.
great.....that would be a treat for Hugo.
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