Chavez To Seize Some Oil Contractors Under New Law

The companies covered by the legislation provide such services as natural gas processing, the injection of natural gas or water into oil fields to improve recovery, and management of docks and boats on Lake Maracaibo.

The law was approved by 153 lawmakers from Chavez's ruling party, while eight lawmakers voted against the measure and three abstained.

Oil Minister Rafael Ramirez said the law could affect foreign companies such as U.S. natural gas processor and distributor Williams Cos. Inc., based in Tulsa, Oklahoma — which said in April that it plans to write off $241 million related to unpaid fees from PDVSA.

"It's fundamental that we control of all of this to guarantee the development of primary activities," Ramirez said in comments published by Venezuela's state-run Bolivarian News Agency.

PDVSA has already taken over the operations of some companies that have claimed a default, including the SIMCO consortium, which has worked injecting water into oil fields in Lake Maracaibo for the past 10 years.

Houston-based Wood Group, which is a 49.5 percent partner in the consortium, said in a statement Thursday that PDVSA took over its operations earlier this year "following the consortium submitting a notice of default due to nonpayment and other contractual disputes." A spokeswoman for the company declined to comment on the new law.