Venezuela to renegotiate Dutch investment treaty
Reuters | Wed Apr 30, 2008
Venezuela to renegotiate Dutch investment treaty
CARACAS, April 30 (Reuters) — Venezuela plans to renegotiate a bilateral investment treaty with the Netherlands because oil companies have started "abusing" the agreement, Energy Minister Rafael Ramirez said on Wednesday.
Ramirez said companies ranging from Norway’s Statoil to China National Petroleum Company (CNPC) have registered in the Netherlands to take advantage of legislation that provides extensive protection for companies.
"What was created as a mechanism to preserve investment capital has become a shortcut for companies to protect themselves under legislation in the Netherlands that is much more liberal," Ramirez told reporters.
U.S. oil giant Exxon Mobil has taken Venezuela to international arbitration under this treaty for the 2007 takeover of its holdings in the Cerro Negro oil project.
But renegotiation would not affect this dispute because even if Venezuela allowed the accord to lapse, the treaty’s benefits would extend another ten years to the companies originally covered under it.
Ramirez said Venezuela’s foreign ministry would be in charge of the renegotiation.
(Reporting by Brian Ellsworth; Editing by Marguerita Choy)
