ANNOUNCEMENT 08 May 2009

In May 2009, the government of Venezuela announced altered domestic business conditions for foreign investors.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Communiqu? of the Minister of Energy and Oil No 051 published in the Official Gazette of the Bolivarian Republic of Venezuela (Gazeta Oficial de la Republica Bolivariana de Venezuela, Numero 39.174, Viernes 08 de Mayo de 2009):
http://www.tsj.gov.ve/gaceta/mayo/080509/080509-39174-18.html (pages 368.920 to 368.921)
Communiqu? of the Minister of Energy and Oil No 065 published in the Official Gazette of the Bolivarian Republic of Venezuela (Gazeta Oficial de la Republica Bolivariana de Venezuela, Numero 39.181, Martes 19 de Mayo de 2009):
http://www.tsj.gov.ve/gaceta/mayo/190509/190509-39181-46.html (pages 369.156 to 369.157)
Communiqu? of the Minister of Energy and Oil No 067 published in the Official Gazette of the Bolivarian Republic of Venezuela (Gazeta Oficial de la Republica Bolivariana de Venezuela, Numero 39.183, Jueves 21 de Mayo de 2009):
http://www.tsj.gov.ve/gaceta/mayo/210509/210509-39183-33.html (pages 369.223 to 369.224)
Financial Times:
http://blogs.ft.com/energy-source/2009/05/11/venezuelas-expropriations-what-it-might-mean/#axzz2WlE9nV4G


Inception date: 08 May 2009 | Removal date: open ended
Still in force

FDI: Treatment and operations, nes

On May 08, 2009, the Venezuelan Minister of Energy and Oil issued a communiqué (No 051) announcing the nationalisation of some companies operating in the field of hydrocarbon-related activities. The same operation was repeated on May 19 (Communiqué No 065) as well as on May 20, 2009 (Communiqué No 067).
Those nationalisations followed the Organic Law that Reserves to the State the Assets and Services related to Hydrocarbon Primary Activities passed on May 7, 2009 that enabled taking of control of hydrocarbon-related goods and services. Indeed it stated in its article 1 that the hydrocarbon activity is subject to the state because of its strategic importance and article 6 authorised the total or partial expropriation of companies operating in this field of activity.
Some of the assets seized were the property of the foreign companies Williams Companies (American), Wood Group (British) as well as Boots & Coots (American).
The first communiqué was published in the Official Gazette of the Bolivarian Republic of Venezuela on May 08, 2009. The second communiqué was published in the Official Gazette of the Bolivarian Republic of Venezuela on May 19, 2009. The third communiqué was published in the Official Gazette of the Bolivarian Republic of Venezuela on May 21, 2009.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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