El Universal reported that Petróleos de Venezuela and the domestic hydrocarbons industry are one of the cornerstones of the socialist project of the government of President Mr Hugo Chavez. The financial and logistic muscle of Pdvsa, mirrored in its economic and political capacity, is of the essence to nail down the new model proposed by the executive office.

Premised on that, in 2002 the government realized that it should take hold of Pdvsa as this company supplies 96% of the country income. After the conflict in 2002-2003, in 2005, the then minister of Energy and Petroleum ordered to enforce the provisions set forth in the current Hydrocarbons Organic Law, in force since 2001.

In 2005, the government struck the first blow to reduce the private interest in the oil industry. In ordering Pdvsa to put an end to operating agreements (undertaken in the nineties during the Oil Opening), another period started of quite a few struggles among Pdvsa, the Republic and oil transnational companies. The latter have filed charges against Venezuela in several arbitral courts by pleading unilateral breaking of contracts and expropriations to the detriment of their rights and assets.

In 2007, operating agreements and strategic partnerships were old story. A total of 32 operating agreements turned into 21 joint ventures, with at least 60% of shares and decision-making in Pdvsa's hands. Add to this the migration of strategic partnerships which, after the traumatic seizures, left unsettled disputes with Conoco Phillips and ExxonMobil.

Source - El Universal

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