Suelopetrol claims it was not notified about Chevron’s expansion in the Venezuela joint venture
The international 'arm' of Venezuelan oil company Suelopetrol announced on Tuesday that it had not received any notice or resolution authorizing U.S. Chevron?to increase?its stake to 49% in a major?Venezuela -project.
Chevron signed this week two agreements with Venezuelan officials granting the company rights to expand its joint venture with PDVSA, the state-owned oil company in Orinoco Belt. It also increased its stake in a second project from 35.8% to 49.9%.
Chevron has agreed to a swap of assets with Venezuela, including the return of crude oil and gas blocks that it no longer wants. The asset swap comes at a time when the interim president Delcy Rodrguez is struggling to get new regulations for the oil industry.
Suelopetrol said it was entitled to an account of all share transfers and disclosure of its current shareholdings in the Orinoco Belt project.
Suelopetrol stated in a press release that the recent decisions regarding the joint venture raise concerns about corporate governance.
Transparency, legal certainty and protection of rights acquired legally are crucial to build investor confidence and ensure sustainable sector development, it said.
Chevron said it "complied with all laws and rules applicable in every country where it operates, including Venezuela," referring questions about Suelopetrol stakes to PDVSA subsidiary CVP and Venezuelan officials.
PDVSA, the Oil and Communications Ministries and PDVSA did not respond to our requests for comment.
Experts have warned that as Rodriguez's administration tries to entice investors, PDVSA partners who have dormant shares or no longer reside in the country may be excluded from projects. Experts say it is unclear how Venezuela, which is cash-strapped, will compensate PDVSA partners for ownership changes.
Suelopetrol has said that it has met all its financial obligations. (Reporting and editing by Julia Symmes Cobb, Bill Berkrot and Deisy Boutrago)
(source: Reuters)
