Venezuela plans to natonalize 15 petrochemical companies

26-Jul-07

Venezuela's government plans to nationalize 15 petrochemical companies, along with six of their units. The left-wing government of President Hugo Chavez is targeting 15 joint venture companies, in 13 of which Pequiven features as a minority shareholder. The petrochemical nationalization follows the administration's previous efforts to control upstream oil production, which finalized in May. The belief is that it is necessary for the private sector to share the entire output chain with the government, from exploitation of primary material to the production of value-added goods. The plan is tied to new legislation to regulate the industry, which will likely go ahead late this year.Venezuela seeks to follow the model of Iran in the petrochemical industry.