Bill to privatize 49% minority stake in Pequiven

23-Nov-05

Government legislators at the National Assembly (AN) are advocating a Bill to privatize a 49% minority stake in the state-owned petrochemicals corporation, Pequiven. However, the second reading of the Bill, scheduled for this week and analyzed by the energy and mines committee at the Assembly after a first debate, faces two obstacles. Firstly, nobody has shown much investor interest in purchasing shares despite 8 years of tentative feelers that Pequiven could be put up for sale, despite the fact that Pequiven is profitable, and turns in more revenue than the state oil corporation, Petroleos de Venezuela (PDVSA). The second obstacle seems to be the question of parliamentary timing when deputies would prefer to be out on the campaign trail before the elections in barely a month's time. They would prefer to foot the legislation until the next session. Though the Bill had been at the top of the agenda, government deputies voted by 64 votes against just 25 to demote the legislation.