Thomko Petro Chemical Blog

Chavez Says E.U. Countries That Back Migrant Law Won't Get Oil   

Venezuelan President Hugo Chavez said he'll prohibit sales of oil to European Union countries that apply a new law approved by the E.U. parliament that allows undocumented workers to be detained. Chavez has also stated that Venezuela also won't accept foreign investment from those European countries.

Venezuela won't attend a meeting of oil producers and consumers this weekend in Saudi Arabia, and sees no need to increase crude output, the country's oil and energy.

Venezuela has no plans to increase its oil output, Minister Rafael Ramirez told reporters today in Maracaibo.  The Organization of Petroleum Exporting Countries doesn't need to meet again before its next scheduled event in September, and says that oil production levels aren't behind the increase in prices.

More news out of Venezuela . . .  

Chavez isn't content with nationalizing the countries oil - today he has formally taken control of the cement industry by decree, and has given three foreign companies 60 days to negotiate a fair price for their assets. Should they fail to reach an agreement, he stated Venezuela will start expropriating shares.

According to the decree, the government will take at least a 60% stake in the Venezuelan subsidiaries of Mexico-based Cemex SAB, Switzerland- based Holcim Ltd. and France-based Lafarge SA.

Chavez is using a windfall from oil exports to increase state control of the economy. Since the beginning of 2007, he has nationalized four crude oil ventures as well as the country's biggest telephone company and electricity provider.

Source: Bloomberg