Venezuelan oil companies involve foreign capital
The economy of Venezuela is extremely dependent on oil and differs by significant instability. The management of oil-and-gas branch of the country is carried out with two state organizations: the Ministry of Power and mining industry and national oil company PDVSA, which carries out practical activities, including a significant share of mutual relations with investors.
However, recently because of a rate on nationalization of natural resources the Venezuelan oil companies suffer substantial damages. In this connection authorities of the country have made a decision on attraction of the foreign capital into this branch.
Minister of power and oil of Venezuela also specifies necessity to involve foreign investments and to improve mutual relations with other state oil companies.
As it has been informed in the official application of minister after the goverment has finished process of nationalization of natural resources, it is ready to begin attraction of the foreign capital.
So, only for the expired period of this year PDVSA has signed contracts on cooperation with Royal Dutch/Shell and Total. And in the end of January, 2008, Norwegian national oil company Statoil has reached with Venezuela the agreement on expansion of operations in a river basin of Orinoco. Statoil requires to lead a quantitative estimation of reserves of block Junin 10, probably, containing the world’s largest deposits of superheavy oil, and it is not excluded, that subsequently the Norwegian company will master it.
However, some experts mark, that intention on attraction of the foreign capital is more likely not the attempt to cooperate, but a call for help as the petroleum industry of Venezuela faces difficulties now.
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