Privatization – Venezuela – Foreign oil investment to continue in long term – Harvest CEO
International oil investment will continue to pour into Venezuela in the long term due to the country’s huge reserves, according to James Edmiston, CEO of Houston-based Harvest Natural Resources (NYSE: HNR).
While questions about President Hugo Chavez’s attitude towards foreign investment are not new, the issue was once again brought into the forefront with the June nationalization of drilling contractor Helmrich & Payne’s (H&P) assets in the country.
Edmiston, however, said that the oil industry cannot afford to ignore the country’s hydrocarbons wealth, especially in the Orinoco heavy crude belt.
“It’s inescapable that there is going to be significant industry activity in Venezuela in the long term because they’ve got just too many reserves for it to be otherwise,” Edmiston said in a results webcast.
Harvest has been operating in Venezuela since 1992 and holds a 32% interest in the Petrodelta JV. State oil company PDVSA and local firm Vinccler hold stakes of 60% and 8%, respectively.
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