Total
negotiating new oil taxes with venezuela
By
Elio Ohep of
Petroleumworld
PETROLEUMWORLD
CARACAS
Petroleumworld.com 09 29 05
France's Total said Tuesday that talks negotiations
are still going on with venezuela on new oil taxes and country's
projects stakes. "Talks are still going on," said Christophe
de Margerie, president of Total's Exploration and Production division.
De
Margerie said that the company isn't opposed to the new tax law,
and it hopes to reach a compromise on the issues soon.
"It's
normal to renegotiate taxes when contracts were signed when (oil)
prices were at $15 a barrel and have now reached $60/bbl,"
he told reporters on the sidelines of an oi in the World Petroleum
Congress l conference in Johannesburg.
Venezuela's
Seniat tax authority early this year announced it was "reclassifying"
the status of oil companies that drill, produce and process oil
in Venezuela to include them in a higher tax bracket.
The
companies must now pay 50% income tax instead of the previous
rate of 34%. The hike affects all the companies who were still
reeling from news early this month that their 32 operating contracts
would cease to exist within six months.
The
energy ministry also announced that oil companies must convert
to joint venture enterprises with the Venezuela's oil company
PDVSA under the new 2001 Hydrocarbons Law, with PDVSA retaining
a majority stake.
The
tax hike applies to some 500,000 b/d of production from fields
that were licensed out in three rounds during Venezuela's oil
opening in the 1990s.
Venezuela
is the world's fifth largest oil exporter and a major supplier
to the United States. Its government is currently negotiating
with various companies to adjust standing agreements so they meet
the rules of a new energy law.
By
Elio Ohep, editor@petroleumworld.com, 58 412 996 3730, Caracas,
Venezuela
Petroleumworld
News 09/26/05
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