ExxonMobil 'Concerned' About Orinoco Tax Increase

US oil company Exxon Mobil (NYSE: XOM) is "concerned" about Venezuela's "unilateral" increase in income tax rates at Orinoco extra heavy crude E&P projects, the company said in a statement.

Exxon Mobil has a 41.7% stake in the Cerro Negro JV, one of four E&P projects operating in Orinoco. Venezuela's national assembly has approved plans to up taxes for the four projects from 34% to 50%.

Orinoco projects produce some 620,000 barrels a day (b/d) and state oil firm PDVSA has said it hopes to double that figure by the year 2012.

That production goal would entail investments of US$16bn, according to PDVSA, which wants private partners pick up at least 40% of that.

PDVSA will hold an average 51% stake in all four Orinoco projects by year-end, state news agency ABN quoted acting energy and oil minister Bernard Mommer as saying earlier this week.

PDVSA holds 41.7% of Cerro Negro and the UK's BP (NYSE: BP) the balance.

The project's crude is then shipped to Louisiana's Chalmette refinery, where Exxon Mobil and PDVSA each control 50%.

Visit BNamericas to access our real-time news reports, 7-year archive, Fact File company database, and latest research reports. Click here for a Free two week trial to our Latin America Oil & Gas information service.

Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE


Most Popular Articles


From the Career Center
Jobs that may interest you
EH&S Compliance Coordinator
Expertise: Environmental Engineer|Regulatory Compliance
Location: Houston
 
Logistics Analyst I (Road) - Direct Hire
Expertise: Logistics Management
Location: Houston, TX
 
Logistics Analyst II (Road) - Direct Hire
Expertise: Logistics Management
Location: Houston, TX
 
search for more jobs

Brent Crude Oil : $53.87/BBL 0.48%
Light Crude Oil : $50.73/BBL 0.79%
Natural Gas : $3.33/MMBtu 2.14%
Updated in last 24 hours