Friday, May 08, 2009

Chavez seizes oil service firms



Mr Chavez is tightening his grip on the oil industry







Venezuelan President Hugo Chavez has sent troops to take over companies that provide services for the oil industry.

VENEZUELA UNDER CHAVEZ
KEY STORIES
Chavez cuts budget over oil price
Chavez wins chance of fresh term
Venezuela marks decade of Chavez
Chavez opponents make poll gains

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Tough times ahead Hugo Chavez wins the right to stand for re-election but faces bumpy economic ride
Referendum: Venezuelan views
Local hero
A tale of two Venezuelas

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Timeline: From Columbus on

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"This is a revolutionary offensive," he told workers near Lake Maracaibo, Venezuela's main oil-producing area.

Military vehicles were used as the state oil company seized supply boats and two US-owned gas facilities.

Mr Chavez nationalised Venezuela's main oil assets two years ago. The fresh drive comes as falling oil prices put state finances under pressure.

The move places hundreds of boats, several ports and an estimated 8,000 oil workers under state control.

The state-owned oil company PDVSA has recently clashed with foreign and local service providers over the prices they charge.

The service companies are owed billions of dollars by PDVSA. But the state firm says lower oil prices mean the contractors are being paid too much.

President Chavez has re-invigorated his nationalisation programme since his victory in a February referendum that removed limits on how many times he and others can stand for re-election.

Venezuela has some of the biggest oil reserves in the world and is the largest oil exporter in the Americas.

Source:http://news.bbc.co.uk/1/hi/world/americas/8041366.stm

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