Venezuelan Oil Minister tells Houston Conference that country is open to dispute resolution
The Venezuelan Oil Minister Paula Henao announced on Tuesday that the new framework for hydrocarbons in the country is open to?dispute settlement outside of the country. This was a major wish expressed by many foreign oil firms before they begin operations in the South American nation.
She said this at a conference outside Houston. "We hope it never comes to that but if it does, we will resolve any issues through this channel." Her remarks at the event hosted by the American Association of Petroleum Geologists, in The Woodlands in Texas, marked her first trip to the U.S. since the January ouster of President Nicolas Maduro by American forces. Since then, U.S. president Donald Trump has promoted a plan to restore Venezuela's oil industry with $100 billion in new investments. Meanwhile, authorities in Venezuela have rewritten rules to facilitate this effort under the interim government of Delcy Rodriguez.
To take effect, the 63-page'regulation' must be published in the Official Gazette. However, a draft version of the legislation shows that it will end the decades long monopoly held by the state oil company PDVSA, and allow private companies the opportunity to apply for licenses to process heavy crude oil, refine it, and engage in international trading.
Henao said that Venezuela is "very confident and eager" to welcome foreign investors back into the energy sector. She did not answer any questions from the audience.
PRIVATE MEETINGS HOUSTON Henao, the new oil minister, was appointed by Rodriguez in March. Rodriguez held this position previously. According to the event organizers she arrived in Houston Sunday evening and is currently holding private meetings with oil firms, including service companies and drillers. On the sidelines of this event, she was seen with Amos Global Energy CEO Ali Moshiri. She has also met with technology companies as PDVSA continues its recovery from a cyberattack.
She has said that Venezuela needs pumps and frequency converters for wellheads, pipelines, compressors of gas, and chemicals to drill, produce, process and transport crude and gas.
Jovanny Martinez, Executive Vice President of PDVSA, is scheduled to speak at the event on Tuesday.
At the conference, U.S. Department of Energy assistant secretary Kyle Haustveit recalled a recent trip to Venezuela's Orinoco region.
He said: "I think that we have?segregated' our countries of the Western Hemisphere based on the type of energy they produce. The U.S. Shale, Canadian Heavy Oil, Venezuelan heavy oil and?offshore Brazil's oil." "But if you zoom out and look at the Western Hemisphere as a whole, we have the resources, people, infrastructure, and refining capability to make it strong in the Americas. We are strong with regards to energy security. And we are strong with regard allies." Reporting by Marianna Paraga and Nathan Crooks from The Woodlands, Texas. Editing by Chizu Nimiyama and Matthew Lewis.
(source: Reuters)
