Venezuela re-controls two oil fields from foreign firms

Venezuela has retaken control of two oil fields from France's Total SA and Italy's Eni SpA after they failed to turn operations to a state oil company as demanded by the Venezuelan government, said Oil Minister Rafael Ramirez on Monday.

"Those two companies resisted adjusting to our laws," the minister told a press conference, adding that the fields should return to "absolute" control by the state oil company Petroleos de Venezuela, or PDVSA.

The National Assembly of Venezuela on Friday approved a government initiative to turn 32 privately-run oil fields into joint ventures with PDVSA, with the state firm holding a minimum 60 percent stake in the new partnership.

The restructuring has been part of the government's broader aim of guaranteeing domestic control over the energy sector.

Ramirez said 20 companies, including Royal Dutch Shell PLC and Spanish-Argentine Repsol YPF, which run 25 oil fields, have signed the deal to create joint ventures.

Another five oil fields were returned to PDVSA as firms with stakes decided not to create joint ventures.

Total SA said it had made an alternate offer for its Jusepin oil field in eastern Venezuela, but was turned down by the government. In response, Ramirez said it was "unacceptable" that Total made an offer demanding a higher stake only 15 minutes before a signing ceremony.

Meanwhile, Italy's Eni SpA also protested the seizure of the Dacion oil field, which it had operated under contract, and said it wanted compensations.

Source: Xinhua