Expert: the Parliament of Venezuela may reduce the government stake in oil projects

Expert: the Parliament of Venezuela may reduce the government stake in oil projects


The new composition of the National Assembly could change the situation so that the state-owned company PDVSA operated as a minority shareholder, said the Director of the energy Agency PetroleumWorld Elio EIA.

MEXICO city, 8 Dec –, Dmitry Znamensky. The new composition of the National Assembly of Venezuela could consider the decline in the share of state participation in oil projects implemented jointly with other countries, said oil analyst and Director of the energy Agency PetroleumWorld Elio EIA.

According to the electoral authorities of Venezuela, the opposition received the majority of votes during the elections to the National Assembly held on Sunday. The coalition the “Roundtable of democratic unity” will be at least 99 seats in Parliament, the United socialist party of Venezuela 46. The fate 22 of mandates yet to be determined.

“The current participation (state oil company) PDVSA (60%) in all joint ventures in the oil industry gives the state absolute control, the national Assembly could change the situation so that PDVSA had a minority share, and private companies – large, to have control over their own actions and finances, and PDVSA operated as a minority shareholder,” said the CES by telephone from Caracas.

The analyst also considered important to ensure rapid return of capital for foreign investors, due to the period of low oil prices.

Venezuela and Russia have formed several joint ventures for the development of oil in the Venezuelan deposits, considered to be the largest in the world. These include, in particular, Petro Monagas, Miranda Petro, Petro Victoria, Petro Perija and Boqueron.