Venezuela’s oil ministry has told partners of state energy company PDVSA that it will maintain the July 28 deadline to migrate oil and gas contracts to a new legal framework approved in January.
Contract Migration
The migration involves about two dozen foreign and local companies, including U.S. oil major Chevron, Spain’s Repsol and Italy’s Eni, most of which have more than one project in partnership or under contract with PDVSA.
The negotiations have accelerated in recent days with foreign executives arriving in Caracas to negotiate the long list of documents required to sign, following twin earthquakes last month that caused delays and took the country’s main airport out of service.
A weighted royalty rate from a newly introduced hydrocarbon tax has become the most important element of the core contracts in negotiation, with official estimates not matching some of the companies’ calculations.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
