Tag Archives: Hugo Chavez

Oil largesse by Venezuela; clout in Caribbean on rise

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Love him or hate him, but you have to like the way he flaunts his oil reserves. The fact that Venezuela has the largest proven oil reserves outside of the Mid-east has permitted Hugo Chavez (Venezuela’s President) to do a lot of things which he otherwise wouldn’t have dared. 4th Petrocaribe summit in Cuba marked another such event. There Chavez offered its Caribbean partners to pay for oil in form of goods and services. Epitome of perverted socialism, Chavez also attacked US capitalism and said that Petrocaribe and its member nations were creating a new ‘new geopolitics of oil.” He went on: In spite of the Yankees, our oil and gas will always be at the service, first of Venezuela, and at the same time of our brother nations of Latin American and the Caribbean. The summit was held in the southern city of Cienfuegos, Cuba, and marked an extension in the number of member countries of Petrocaribe. Honduras joined the ranks to bring the total membership of the alliance to 17 nations. The entire concept of Petrocaribe is based upon Venezuela using its oil to increase its influence in the region. Venezuela supplies oil on preferential terms to the Caribbean nations, giving huge subsidies. The Petrocaribe mechanism allows its member countries to defer payment on 40% of the oil that they buy from Venezuela for up to 25 years. On this amount these nations pay interest at a mere 1% annually. Chavez has offered other signatories to become a part of the arrangement that currently exists between Venezuela and Cuba. Every year Cuba pays for its oil by offering free services like teaching and medical in return. Cuba has sent 20,000 doctors and teachers to work off its oil-debt that is estimated at $3billion a year. And of course, Chavez’s visit to Cuba would have been incomplete without meeting his dear and ailing friend Fidel Castro. Before the summit, Venezuelan President spent nearly two and a half hours with Castro. Castro, subsequently, wrote a letter to Chavez, congratulating him on his ‘brilliant’ job in hosting the Petrocaribe summit. The analysts have mixed opinions when it comes to the Petrocaribe initiative. While it is true that several Caribbean nations would be unable to pay for their oil, especially as price of crude hovers around $90 a barrel. The mechanism becomes crucial for relieving their oil-burden and thus simulating economic development in these nations. But there’s a flip side too. Chavez’s generosity is rightly dubbed as an ostensible attempt to spread his leftist ideology in the region. Besides, critics say the deal supplies oil at market prices and is increasing the indebtedness of small Caribbean states. To reiterate: you’ve got to love the way Chavez uses his resources. It ain’t easy to trash America. Via

Venezuelan oil driller gets majority stakes in country

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After nationalizing country’s oil reserve, Venezuela government has forced foreign oil drillers to sign a pact, in which they will sell their majority stakes to state-run Petroleos de Venezuela, S.A. New norms have forced to change hands as Hugo Chavez provides only two options, as one is to opt or to leave country altogether. Two American oil giant, Exxon Mobil and ConocoPhillips have firmly rejected Venezuelan government offer to negotiate with the new norms as they are ready to leave country. But four others Statoil, BP, Total and Chevron have signed the deal and ready to work with the Venezuelan PDVSA. We got the detail of six heavy oil projects in Venezuela about the revised stakes and estimated production. In CERRO NEGRO: Petroleos de Venezuela SA (PDVSA) will own 83.37 percent and BP PLC will left be 16.63 percent stake, whereas previously PDVSA owned only 41.6 percent; Exxon Mobil 41.7 percent; BP 16.7 percent, and will produce 105,000 barrels per day. In SINCOR: PDVSA gets 60 percent dominance, Total was left with SA 30.3 percent and Statoil ASA 9.7 percent, and total production will be 180,000 barrels per day. Previously PDVSA had 38 percent stakes, Total had 47 percent and Statoil were enjoying with 15 percent. In AMERIVEN: PDVSA get access to ConocoPhillips 40 percent additional shares and its total stakes rose to 70 percent, whereas Chevron Corp. is firm on its previous stakes 30 percent and will produce 190,000 barrels per day. In PETROZUATA: PDVSA successfully gets 100 percent stakes, in which ConocoPhillips owned 50.1 percent, but as it didn’t sing the new Venezuelan pact, PDVSA get access to 100 percent stakes. PETROZUATA will now produce 104,000 barrels per day. In LA CEIBA: PDVSA will get advantage over the 50 percent stakes of Exxon Mobil and will be empowered with the 100 percent equity. In COROCORO: PDVSA will rule with the additional 36 percent stakes, which it acquire from the ConocoPhillips 32.5 percent and OPIC Karimun Corporation 6.5 percent, Eni SpA successfully retain its previous owned 26 percent stakes. Venezuela has opted to nationalize country’s measure business. Chavez has already pulled out his country from the World Bank and IMF. Chavez led Country show its displeasure with U.S dominating ruling and urges other nation to pad up against U.S autocracy. Image Source

Chavez woes neighbors’ with oil offer

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Unstable oil prices have already eaten into the many economies and big consumers like US and European countries are accusing Iran, Iraq, Russia and Venezuela for it. If the western countries’ allegations are right than we should praise Venezuelan President Hugo Chavez effort, who wants to satiate the energy needs of his Latin America allies. Recently, Venezuela has struck the energy security treaty with Argentina and intended to sign similar treaties with Uruguay, Nicaragua, Ecuador and Bolivia. While signing the deal, Chavez didn’t forget to launch a verbal attack on Washington and accused America as a very serious problem and its insatiable voracity for oil will claim many innocent lives. I think anti-American countries are right on the point that State is using its power for grabbing extra oil unfairly. In 2003 US invaded Iraq for mass destructive weapon, but ironically it found nothing, but yes its soldier killed millions of innocent Iraqi and rapped defenseless women, pity for self claimed sophisticated gentry. One of American ally in Iraq, Australia has admitted that they support Iraq invasion for oil only, therefore it’s clear that there were no Saddam mania, but, absolutely oil altogether. Now America is vying for Iran, beware! America, it’s not Iraq where you were welcomed for research weapon, it’s Iran where your army will feel the heat of dessert and flame of heated oil. Venezuela’s deal, definitely a political motivated step, where no amity for the neighbor in it, but a step forward to make itself secure from the oil dragon name America, I suppose, and I also feel that if America is going to ruin the countries, merely for its mean interests, than lobbing against it, will be good for the small countries and humanity as well. Image Source