Venezuela Oil Minister Says Foreign Oil Firms Owe Billions in Back Taxes,

[NNN0LHI]

http://ap.tbo.com/ap/breaking/MGB8CTJH09E.html

Venezuela Oil Minister Says Foreign Oil Firms Owe Billions in Back Taxes, Royalties

CARACAS, Venezuela (AP) - A number of foreign oil companies owe Venezuela billions of dollars in unpaid taxes and royalties after violating contracts for years, Venezuela's oil minister said Saturday.

The companies that run 32 operating agreements under state oil company Petroleos de Venezuela S.A. (PDVSA) owe roughly US$3 billion (euro2.38 billion) in back taxes, Oil Minister Rafael Ramirez told reporters. Similarly, foreign firms with heavy crude upgrading projects in Venezuela's Orinoco tar belt owe more than US$1 billion (euro790 million) in unpaid royalties, he said.

One single project in the Orinoco area alone owes the government roughly US$1 billion (euro790 million), the minister said, declining to identify the company.

"This is a serious conflict," Ramirez said. "We have talked about it with the companies and we're demanding that they follow (the law) or they won't be able to continue operating in the country."

[Chicago Democrat]

1. Ruh Ro...

Watch oil price spike on news.

[jfw9999]

2. hurray for Chavez

interesting posting + i especially like your quotation.

[cliss]

3. Well....this ought to be interesting....

Looks like it might be a showdown at the Not-OK Corral, after all. I've posted a few times how I've felt the 'war of words' between Venezuela & the US is like an impending showdown between a "firebrand" upstart and an aging cowboy, whose brain is fried, but has good buddies & lots of wealth to back him up.

Now, Chavez recently slapped the oil companies which are operating in Venezuela with a tax surcharge (I think it was 17% - pretty steep). There was a lot of grumbling. A disgruntled oil company executive said, "We're paying, but it's under duress".

But now, it looks like Old Firebrand Hugo has made the tax surcharge RETROACTIVE. Heh he he this promises to very entertaining.

(settles in, sits back with the popcorn, ready for some action).

[Chicago Democrat]

4. Maybe they didn't pay to cause a pretext....

for US takeover..



Just speculating.

[bahrbearian]

5. I didn't see where it was Retroactive.

"In some projects, the government found companies would pump as much as twice more oil than agreed, he said. Ramirez said some companies also failed to properly maintain oil wells so as to maintain high recovery rates.

Next week, Ramirez said he plans to go to the National Assembly and will give lawmakers copies of the contracts and other documents showing the various abuses.

Five oil firms operate joint venture agreements with PDVSA in the Orinoco region: ExxonMobil Corp., Total, ChevronTexaco, Statoil and BP. "

[MasonJar]

6. Big oil companies once again exploiting whereever they can.

[tedoll78]

7. Hmm..

I wonder if there's anything in the contracts saying that Venezuela could cut them off from pumping-out any more oil when the contracts are breached?

Something tells me that if Venezuela were to do so, we (the U.S.) would find a reason to threaten them..