Venezuela continues negotiations with major oil companies that have withdrawn from the nation in the face of President Hugo Chavez's nationalization of the industry, but will not back down from insistence on Venezuelan control, its ambassador to the United States said in Houston today.
Venezuela will hold the majority control in upstream operations, Ambassador Bernardo Alvarez said in a meeting with the Chronicle editorial board. "We want partnerships with private companies, but with that rule."
Alvarez also said he does not believe the United States will attempt to confiscate Venezuelan assets in this country, including five refineries, as compensation for oil company assets in Venezuela. He hopes his country and the companies involved will reach agreement.
Last month, Houston-based ConocoPhillips and Irving-based Exxon Mobil refused to accept new working terms for their Venezuelan operations. Venezuela's national oil company, Petróleos de Venezuela, known as PDVSA, absorbed their stakes in projects in the oil-rich Orinoco River basin. The two companies are negotiating compensation for what they are giving up.
If negotiations broke down and went to international arbitration, legal experts told the Chronicle last month, an arbitration award in favor of the American companies could lead to seizure of Venezuelan assets. But the process is complex and expensive.
Alvarez said he expected talks to reach an accord, rendering such a fight unnecessary.
"Do not assume that," Alvarez said about the prospect of arbitration. "It is the best for everybody else to go and reach an agreement."
Four other oil companies Chevron Corp., Total, BP and Statoil, Norway's state-owned oil company signed agreements to stay in Venezuela as PDVSA's minority partners.
Alvarez is spending several days in Texas on a visit he said is largely unrelated to the energy business, though he said he did have meetings planned with officials of Chevron and Citgo the American subsidiary of PDVSA. He also has met with community groups, spoke today at a luncheon of the Greater Houston Partnership and was scheduled to attend a City Hall reception this afternoon.
The ambassador said he has not encountered hostility from Americans despite Washington's chilly relations with Chavez, a socialist who once likened President Bush to the devil.
"At least they know who Chavez is," he said, and Americans are open to discussions about differences and common interests involving the United States and the South American nation.
Blogalaxia Tags: Chavez,Venezuela,CITGO
