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PDVSA buys U.S. CMS Energy's Seneca power operation in Venezuela
Petroleumworld
CARACAS
Petroleumworld.com 02 14 06
Venezuela's oil company moved Tuesday to continue nationalizing energy companies by buying a controlling stake in Seneca power company electricity provider for Margarita Island. Seneca is a subsidiary of U.S. power company CMS Energy's Corp.CMS Energy and the Bolivarian Republic of Venezuela signed today a memorandum of understanding for the sale of the company's interest in Sistema Electrico de Nueva Esparta, C.A. (SENECA), including its 88 percent stake, certain associated generating equipment and other assets for $105.5 million.
SENECA is a private electric utility that serves the state of Nueva Esparta in Venezuela through a concession agreement with the government of Venezuela. SENECA provides electric service to about 120,000 customers on Margarita and Coche islands off the northern coast of Venezuela. It owns and operates generating units with a capacity of 240 megawatts. CMS Energy purchased a controlling interest in SENECA in 1998 for $ 63 million. It is CMS Energy's sole business in Venezuela.
The buyout is part of nationalization drive of all the Venezuela's private energy providers promoted by President Hugo Chavez, who said last month that Venezuela will nationalize all private energy companies.CMS Energy (NYSE: CMS) is a Michigan-based company that has as its primary business operations an electric and natural gas utility, natural gas pipeline systems, and independent power generation.
Petroleumworld 14 02 07
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