Venezuela Opting For Privatization Of State Oil Sector

PUBLISHED BY
Anna Domanska



TAGS:


1 year ago




Venezeula is considering ways to privatize the oil sector and is thereby allow joint-ventures to visit and exploit the oil fields of the country. As per a BBC report, the sources in the country’s oil sector are furiously placing their bets that President Maduro would end up bringing a change in the Hydrocarbon Law of the country that welcomes foreign companies collaborating with PDVSA to exploit the oil fields extremely. There is, however, no official confirmation on the plan.

However, this is not the first time that news of exploitation of Venezuela oil fields has come up. Earlier on December 6 last year, a Reuters report stated that the opposition as well as the regime parties are planning and considering handing over all oil field operations and management to the PDVSA partners. The special prosecutor of the Juan Guaido interim government, Jose Ignacio Hernandez stated that the privatization move is a noticeable sign of a State collapsing badly.

Oil pump on the oil field in the night

Silhouette of two oil pumps are pumping crude oil on the oil field under night sky with stars and Milky way. Oil industry equipment

The amendment to the Hydrocarbon Law is deeply discussed with the joint ventures to be carried out with Chevron, Russia’s Rosneft, and CNPC- the state-owned Chinese company. Talks for the same are being conducted within the premises of Boston Group, where the officials who are closest to Maduro, the opponents as well economists regularly meet to discuss the move and politics of the state.

The privatization initiative comes to the forefront at a time when the international sanctions have almost demolished the tyranny and forced it to bring a change and flexibility into certain economy areas, like price and exchange control. As per reports, privatization of the oil sector and joint ventures in Venezuela would mean a breakdown of the excellent energy policy which was introduced by the Bolivarian Revolution from the time of regime of late President Hugo Chavez.

Oil Production

In Venezuela, the production of crude oil, which was earlier almost in a dismal diminished state, has increased to 600 thousand barrels each day, all thanks to the PDVSA. According to state reports, the oil production in Venezuela was around 926,000 barrels each day an average in November. This count is 200,000 barrels higher than the count in October, which means a 20% increase.

It is because the PDVSA promoted production, optimum sales, as well as collections for the partner companies, despite having a minority in the oil sector partnership scheme.

President Maduro would officially hand over the operations of the oil sector to mixed companies and also discuss innovating a new Hydrocarbon Law with the opposition in the National Assembly. The new regulations and rules introduced would allow all multinationals to acquire the majority of the mixed companies in Venezuela.

Avatar
Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

Recent Posts

Roblox declares Q1, reports $387 million revenue as bookings increase

Roblox declares Q1, reports $387 million revenue as bookings increase

Roblox, the hugely popular online gaming platform, reported its first-quarter earnings after becoming a listed company. Its revenue more than doubled as the videogame company benef
13 hours ago
Weak US job report results in volatile market

Weak US job report results in volatile market

A weak job report resulted in a record close on Friday for the US stocks. The US labor department’s monthly non-farm payrolls report revealed employers hired 266,000 new workers
2 days ago
Star and Blackstone launch bids to buyout Australia’s Crown Resorts

Star and Blackstone launch bids to buyout Australia’s Crown Resorts

A bidding war has broken out between Australian casino company Star Entertainment Group and US private equity investor Blackstone Group over Crown Resorts, Australia’s bigges
2 days ago
5 Most Expensive Divorce Settlements in History

5 Most Expensive Divorce Settlements in History

Almost half of the marriages end in divorce is an oft-quoted adage, but surprisingly, this is not true in today’s world. The reasons are varied, gender equality, the higher p
3 days ago
JPMorgan Chase appoints two new CIOS in bid to make its C-suite more diverse

JPMorgan Chase appoints two new CIOS in bid to make its C-suite more diverse

JPMorgan Chase, the largest U.S. bank by assets, has appointed two new executives to head its information units in a bid to make its workforce more inclusive and increase racial an
3 days ago
US solar energy sector sees 7% drop in jobs

US solar energy sector sees 7% drop in jobs

The U.S. solar industry witnessed a 7% cut in jobs due to the coronavirus and increasing use of labor-saving tech in the industry, according to an industry report. Job decline is n
3 days ago