By OGJ editors
HOUSTON, Dec. 5 -- Petroleos de Venezuela SA has signed transitional agreements with BP PLC and Royal Dutch Shell PLC to convert their operating service agreements into joint ventures with the government.
PDVSA Pres. Rafael Ramirez, who also is Venezuelan oil minister, told reporters in Caracas on Dec. 2 that 15 companies have signed the agreements, and more companies are expected to do the same by yearend.
The government is requiring companies that operate 32 oil fields in Venezuela to convert to joint ventures with PDVSA. The transitional agreements will be valid until Venezuela approves definitive guidelines for joint ventures with PDVSA (OGJ, Apr. 25, 2005, p. 48).
Companies involved in 26 of the fields had signed transitional agreements as of Dec 2, Ramirez told the Associated Press.
PDVSA is calculating the value of each field in an effort to determine ownership percentages in the joint ventures. The amount that an individual company has invested in a particular field will be considered in determining its stake, Ramirez told AP.
In a related matter, companies also must settle outstanding tax claims before the joint ventures will be considered permanent, government officials have said (OGJ Online, Aug. 4, 2005).
