Tag Archives: Private Property

Jun
24
2010
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Another American Company Expropriated by Hugo Chávez

When Will the U.S. Government Raise Its Voice?

June 24, 2010

In his latest offensive against U.S. investments in Venezuela, President Hugo Chávez last night seized the Venezuelan operations of American oil company, Helmerich and Payne.

The company’s 11 oil rigs had been non-operational for several months due to the Venezuelan government’s inability to pay money owed to Helmerich and Payne. As nationalizations, expropriations and government take-overs continue in Venezuela, the oil-rich nation has seen its economy plummet. Justifying its action, the Chávez government said that the Oklahoma City-based company’s temporary shut-down was the same as “hiding” their oil rigs. “We won’t allow them to sabotage our operations,” said Venezuelan Oil Minister Rafael Ramirez.

Helmerich and Payne is holding its ground until President Chávez pays the company the money it is owed. Executive Vice President John Lindsay affirmed that, “While we will continue to pursue future drilling opportunities in Venezuela for these 11 conventional rigs, we do not expect to return to work in Venezuela until additional progress is made on pending receivable collections.”

President Chávez’s expropriation binge has touched virtually every sector of the Venezuelan economy; the oil industry has been particularly targeted. American energy giants such as Exxon Mobil and ConocoPhillips preceded Helmerich and Payne as targets of Chávez’s expropriations. Both companies eventually pulled out of Venezuela entirely due to President Chávez’s policies. Other U.S. companies such as Cargill, Pepsi-co, McDonald’s, and Wendy’s have seen their private properties seized and/or harassed by Venezuela’s central government.

While the U.S. State Department has issued several condemnations of President Chávez’s antics, it has yet to take tangible measures to protect the interests and private property of American businesses in Venezuela.

 
Jun
24
2010
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editor
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Chávez Ramps Up Efforts to Silence Critics

Freedom House today condemned ongoing efforts by the Venezuelan government to bring criminal charges against the owners of Globovision, the only remaining independent television station in the country.  Freedom House called the continuing persecution of the station’s ownership a transparent effort to silence one of the few remaining voices that are willing to criticize the policies of President Hugo Chavez in advance of upcoming parliamentary elections.
Two major shareholders in the private television station have recently come under pressure from the Chavez administration.  Co-owner Guillermo Zuloaga was forced to flee the country to avoid arrest on charges many believe to have been fabricated by the government.  Additionally, the government took over the bank of another shareholder, Nelson Mezerhane, and threatened to seize Mezerhane’s Globovision shares as part of the bank takeover.  Currently in Florida, Mezerhane cannot return to Venezuela without fear of arrest.
“President Chavez’s denial that these actions are politically motivated would be more credible if not for his systematic efforts over the last decade to close the space for independent voices, particularly the voices of those who oppose his policies,” said Paula Schriefer, director of advocacy at Freedom House. “Chavez’s continued intolerance for criticism only serves to further weaken what little is left of Venezuela’s democratic credentials.”
Frank La Rue, special rapporteur at the United Nations for freedom of expression, denounced the “harassment” of Zuloaga and said that the arrest warrant was “politically motivated, aimed solely at silencing Zuloaga.”
Reports of crack-downs on independent media have continually plagued Venezuela during the Chavez administration but have increased in intensity as the opposition prepares for parliamentary elections in September.  Venezuela dropped two points this year in Freedom of the Press due to increased violence against journalists and the closing of more than 30 radio and television stations under the controversial Law of Social Responsibility in Radio and Television.
Venezuela is ranked Not Free in Freedom of the Press 2010 and Partly Free in Freedom in the World 2010, Freedom House’s survey of political rights and civil liberties.
For more information on Venezuela, visit:
Freedom of the Press 2010: Draft Venezuela Report
Freedom in the World 2010: Venezuela

Freedom House condemned ongoing efforts by the Venezuelan government to bring criminal charges against the owners of Globovision, the only remaining independent television station in the country.  Freedom House called the continuing persecution of the station’s ownership a transparent effort to silence one of the few remaining voices that are willing to criticize the policies of Chavez in advance of upcoming parliamentary elections.

Two major shareholders in the private television station have recently come under pressure from the Chavez administration.  Co-owner Guillermo Zuloaga was forced to flee the country to avoid arrest on charges many believe to have been fabricated by the government.  Additionally, the government took over the bank of another shareholder, Nelson Mezerhane, and threatened to seize Mezerhane’s Globovision shares as part of the bank takeover.  Currently in Florida, Mezerhane cannot return to Venezuela without fear of arrest.

“President Chavez’s denial that these actions are politically motivated would be more credible if not for his systematic efforts over the last decade to close the space for independent voices, particularly the voices of those who oppose his policies,” said Paula Schriefer, director of advocacy at Freedom House. “Chavez’s continued intolerance for criticism only serves to further weaken what little is left of Venezuela’s democratic credentials.”

Frank La Rue, special rapporteur at the United Nations for freedom of expression, denounced the “harassment” of Zuloaga and said that the arrest warrant was “politically motivated, aimed solely at silencing Zuloaga.”

Reports of crack-downs on independent media have continually plagued Venezuela during the Chavez administration but have increased in intensity as the opposition prepares for parliamentary elections in September.  Venezuela dropped two points this year in Freedom of the Press due to increased violence against journalists and the closing of more than 30 radio and television stations under the controversial Law of Social Responsibility in Radio and Television.

Venezuela is ranked Not Free in Freedom of the Press 2010 and Partly Free in Freedom in the World 2010, Freedom House’s survey of political rights and civil liberties.

For more information on Venezuela, read:

Freedom of the Press 2010: Draft Venezuela Report

Freedom in the World 2010: Venezuela

 
Jun
24
2010
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editor
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Chávez to expropriate 11 Helmerich & Payne oil drills

Article originally published by Dow Jones

Venezuela’s government said Wednesday it plans to seize control and nationalize 11 oil drills owned by U.S. firm Helmerich & Payne, which it says were purposely not being utilized as part of a plot against President Hugo Chavez.
According to a statement from state oil company Petroleos de Venezuela, or PDVSA, once the drills are nationalized by the government, PDVSA will being using the drills to “impulse” oil production and strengthen the country’s sovereignty over the oil sector.
The announcement was made by PDVSA President Rafael Ramirez, who is also Venezuela’s energy minister, during a press conference in the oil-rich state of Zulia, according to the statement.
Ramirez said the sidelined drills were going to be used as a “launching pad” for a broader plan by elements in the private sector to boycott oil production in order to destabilize the economy and cause problems for the Chavez government.
“There is a sector of drill owners that have rejected discussing rates and service plans with PDVSA and have preferred to store their equipment for one year in Anaco, in the state of Anzoategui,” Ramirez said. “The case is specifically about Helmerich & Payne.”
As such, the PDVSA chief said the government has requested approval from legislators to declare the company’s drills public property.
“We aren’t going to allow them [the opposition] to sabotage our operations like they did in late 2002,” Ramirez said.
The Chavez government, in power since 1999, was hit by a crippling oil strike in late 2002 and early 2003 in which PDVSA, then largely controlled by the opposition, completely halted production in an effort to push out Chavez.
Many workers eventually returned to their posts, while thousands of others were fired. PDVSA is now fully controlled by the Chavez government, and its workers take an oath of commitment to “Commander Chavez” and his socialist movement.
In recent years, Chavez has stepped up the nationalization of major parts of the oil industry, which is Venezuela’s lifeline. Venezuela is one of the world’s largest oil exporters and oil accounts for 96% of all its exports.
Officials at Helmerich & Payne weren’t immediately available for comment.

Venezuela’s government said Wednesday it plans to seize control and nationalize 11 oil drills owned by U.S. firm Helmerich & Payne, which it says were purposely not being utilized as part of a plot against President Hugo Chavez.

According to a statement from state oil company Petroleos de Venezuela, or PDVSA, once the drills are nationalized by the government, PDVSA will being using the drills to “impulse” oil production and strengthen the country’s sovereignty over the oil sector.

The announcement was made by PDVSA President Rafael Ramirez, who is also Venezuela’s energy minister, during a press conference in the oil-rich state of Zulia, according to the statement.

Ramirez said the sidelined drills were going to be used as a “launching pad” for a broader plan by elements in the private sector to boycott oil production in order to destabilize the economy and cause problems for the Chavez government.

“There is a sector of drill owners that have rejected discussing rates and service plans with PDVSA and have preferred to store their equipment for one year in Anaco, in the state of Anzoategui,” Ramirez said. “The case is specifically about Helmerich & Payne.”

As such, the PDVSA chief said the government has requested approval from legislators to declare the company’s drills public property.

“We aren’t going to allow them [the opposition] to sabotage our operations like they did in late 2002,” Ramirez said.

The Chavez government, in power since 1999, was hit by a crippling oil strike in late 2002 and early 2003 in which PDVSA, then largely controlled by the opposition, completely halted production in an effort to push out Chavez.

Many workers eventually returned to their posts, while thousands of others were fired. PDVSA is now fully controlled by the Chavez government, and its workers take an oath of commitment to “Commander Chavez” and his socialist movement.

In recent years, Chavez has stepped up the expropriation of major parts of the oil industry, which is Venezuela’s lifeline. Venezuela is one of the world’s largest oil exporters and oil accounts for 96% of all its exports.