BBC is reporting Conoco's loss at US$4.5 billion.
Chevron, BP, Total SA and Statoil will continue to work in Venezuela. BBC is reporting that Statoil will be reducing its stake to 15% in a country where, As Associated Press reports, the companies will also face flat rate taxes of 50% and royalties of 33.3% on its minor equity position.
Petro-Canada had previously announced it was abandoning its projects in the South American country.
Under Chavez, Venezuela first raised royalty and tax rates, then later assumed majority control of all oil projects as part of a larger nationalization drive of "strategic" economic sectors. Chavez says those policies are ensuring that oil benefits Venezuelans instead of foreign corporations and governments.For a commentary on developments in Venezuela, the Financial Times offers some insights.
Rising energy prices and Venezuela's huge oil deposits have strengthened his hand: The country's reserves are the largest in the Western Hemisphere and may eventually prove bigger than Saudi Arabia's if it continues certifying heavy oil deposits in the Orinoco River region.
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