Forbes/AFX News Limited: Shell, BP deepen links with Venezuela's PDVSA: “In mid-August, the authorities briefly shut down Shell's offices for 48 hours as tensions over the law mounted.”: “Under the accords signed yesterday, relating to the 2001 law, PDVSA will now have a controling stake of at least 51 pct in any ventures between the state-owned group and Shell and BP.”: Friday 2 December 2005
CARACAS (AFX) - Oil giants Royal Dutch/Shell and BP PLC yesterday signed accords deepening their commercial ties with Venezuela's state-owned oil company, Petroleos de Venezuela (PDVSA), officials said.
Venezuela's government has been in dispute with foreign oil firms, saying they had failed to pay what was owed under a 2001 law requiring 16.6 pct royalties and income taxes of 50 pct on petroleum.
In mid-August, the authorities briefly shut down Shell's offices for 48 hours as tensions over the law mounted.
The companies had argued they should pay less royalties and income tax under a previous agreements signed in the 1990s.
Under the accords signed yesterday, relating to the 2001 law, PDVSA will now have a controling stake of at least 51 pct in any ventures between the state-owned group and Shell and BP.
'We want the international groups to carry on operating, but they need adhere to the national law,' energy minister Rafael Ramirez said at the signing ceremony.
He said that a number of oil firms had still to adhere to the law, including US-based ChevronTexaco Corp, Italy's ENI and France's Total.
PDVSA officials said more oil groups were likely to sign accords in the coming week.
Spain's Repsol, Brazil's Petrobras, Japanese group Teikoku, and China National Petroleum Corp (CNPC) have signed agreements relating to the 2001 law.
Click here to return to ShellNews.net HOME PAGE