Originally posted by KazetNagorraThe utility of foreign investors who don't do anything economically useful is vastly overrated. I'm sure this company profited immensely from its investment in Venezuela.
I'm sure there were alternatives that didn't involve scaring away investors.
Contrary to neoliberal theory, a country should be mainly concerned with improving the economic well-being of their citizens not wealthy foreign investors. A cursory glance at the history (and present) of Latin America shows that the interests of the latter are far more favored by the average government in that region. Chavez was not elected to continue that trend.
Originally posted by no1marauderThe problem is scaring away foreign investors who do do something economically useful.
The utility of foreign investors who don't do anything economically useful is vastly overrated. I'm sure this company profited immensely from its investment in Venezuela.
Contrary to neoliberal theory, a country should be mainly concerned with improving the economic well-being of their citizens not wealthy foreign investors. A cursory gl ...[text shortened]... vored by the average government in that region. Chavez was not elected to continue that trend.
maybe Chavez has got a mental problem.
or doesn't really care what problem he causes as long as he stays in power. it's not him who'll be living on rice and beans!
the oil rig company is now out 11 oil rigs AND $47M. foreign companies would have to be nuts to leave any assets in the country, let alone start new ventures there.
oh, and by the way. Chavez to Obama: in yo' face, Satan!
Originally posted by zeeblebotThose payments are in dispute; apparently some portion are based on future estimated royalties and some are claims based on currencies values. As I said, there are international mechanisms for these types of disputes and Chavez has complied with their decisions in the past. $47 million is really chump change in the overall picture.
i wonder if Venezuela will try to "nationalize" the $47M in overdue payments that the oil rig company had stopped services for.
Originally posted by KazetNagorraOne of the goals of the Bolivarian Revolution is to make the country less dependent on foreign investment. Given the history of the region, that seems wise; at the very least, it is a legitimate policy goal that most Venezuelans apparently agree with.
The problem is scaring away foreign investors who do do something economically useful.
Originally posted by no1marauderhttp://www.businessweek.com/news/2010-06-24/pdvsa-to-seek-seizure-of-helmerich-oil-rigs.html
Those payments are in dispute; apparently some portion are based on future estimated royalties and some are claims based on currencies values. As I said, there are international mechanisms for these types of disputes and Chavez has complied with their decisions in the past. $47 million is really chump change in the overall picture.
PDVSA to Seek Seizure of Helmerich Oil Rigs
June 24, 2010, 2:02 PM EDT
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PDVSA, as the oil company is known, will seek National Assembly approval to seize the 11 rigs in Anzoategui state after a long payment battle with the Tulsa, Oklahoma-based company, Rafael Ramirez, oil minister and president of PDVSA, said yesterday in an e-mailed statement.
“There are rig owners that have refused to discuss payment rates for services and preferred to hide the rigs for a year,” Ramirez said. “It’s the specific case of Helmerich & Payne. We won’t allow them to sabotage our operations.”
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Helmerich & Payne idled its drilling rigs last year after PDVSA fell behind with payments to service suppliers amid a drop in oil output and revenue. Ramirez, who said in January that debts to suppliers had “vanished,” has overseen the nationalization of ventures with Exxon Mobil Corp. and ConocoPhillips and the seizure of assets from more than 60 services companies last year.
Helmerich Executive Vice President John Lindsay said the company would keep the rigs idled until overdue debts were paid and accumulated bolivars were converted into U.S. dollars abroad.
“While we will continue to pursue future drilling opportunities in Venezuela for these 11 conventional rigs, we do not expect to return to work in Venezuela until additional progress is made on pending receivable collections and on conversion of local currency to U.S. dollars,” Lindsay said during a conference call on April 29.
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Originally posted by no1marauderWho is talking about "dependency"? If some foreign investor wants to do some constructive, long-term investment in your country it's not very smart to make it difficult for them.
One of the goals of the Bolivarian Revolution is to make the country less dependent on foreign investment. Given the history of the region, that seems wise; at the very least, it is a legitimate policy goal that most Venezuelans apparently agree with.
http://www.tulsaworld.com/business/article.aspx?subjectid=49&articleid=20100625_49_E1_Helmer575809
H&P downplays rig seizure reports
A spokesman says various news agencies may have "misinterpreted" events.
By ROD WALTON World Staff Writer
Published: 6/25/2010 2:23 AM
Mike Drickamer, a spokesman of H&P, said various news agencies — including The Associated Press — may have "misinterpreted" events in the South American nation. He said Venezuelan oil officials merely announced they would ask the National Assembly for approval to seize the rigs.
"That's all that's happened," Drickamer said.
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PDVSA's invoice backlog exceeded $100 million at one point during the impasse. Venezuela's decision to devalue its currency, the bolivar, cost Helmerich & Payne an estimated $20 million in recorded losses during its fiscal second quarter, the company stated in its earnings report.
...
Originally posted by zeeblebot...
http://www.tulsaworld.com/business/article.aspx?subjectid=49&articleid=20100625_49_E1_Helmer575809
H&P downplays rig seizure reports
A spokesman says various news agencies may have "misinterpreted" events.
By ROD WALTON World Staff Writer
Published: 6/25/2010 2:23 AM
Mike Drickamer, a spokesman of H&P, said various news agencies — including Th ...[text shortened]... s during its fiscal second quarter, the company stated in its earnings report.
...
Venezuela's move to nationalize energy operations has hit other Oklahoma-related companies hard in recent years.
For instance, the Venezuelan government last year seized two long-term joint ventures with Tulsa-based Williams Cos. Inc. Venezuela took control of two Williams natural gas compression projects in May 2009.
Williams also was forced to take a $241 million non-cash impairment in 2009's first quarter, citing PDVSA's refusal to make payments.
Houston-based ConocoPhillips has taken its Venezuelan financial conflicts to international arbitration, according to reports.
...
Originally posted by KazetNagorrathe fact is that he increasing the role of government in the venezuelan economy, he is taking over private companies, the public owndership of these is one of the core principles of socialism, this is the case regardless of whether or not he is doing such thing to enrich himself.
It's not a fact. If it's true that, as my hypothesis is, Chavez is doing it to enrich himself and his friends on the short term, then it's clearly not a "push for socialism" and the Reuters reporter is lying.[/b]