Venezuela congress slams oil deals with US, French companies

CARACAS: Venezuela’s opposition- run congress issued a resolution calling deals between state-run oil company PDVSA and US and French companies announced this week illegal, since they had not been sent to lawmakers for approval.

The body said the oilfield deals with France’s Maurel & Prom and little- known US company Erepla violated article 150 of Venezuela’s constitution, which requires that contracts signed between the state and foreign companies be approved by the National Assembly, as Venezuela’s congress is known.

“They are giving concessions that violate the law,” said lawmaker Jorge Millan, mentioning the two contracts.

Congress, largely stripped of its power since the opposition took it over in 2016, is unlikely to be able block the deals from going forward.

But the rejection could create legal complications under a future government.

Maduro is set to be inaugurated for his second consecutive term on Thursday following a May vote considered a sham by the domestic opposition and many foreign governments.

A regional bloc of Latin American countries last week called on Maduro, a protege of the late Hugo Chavez, not to take office.

The deals are part of Maduro’s effort to reverse a sharp decline in the OPEC nation’s crude output that has crippled its economy.

Erepla said it would invest up to US$ 500 million in three fields, while Maurel & Prom said it would invest up to US$ 400 million for a 40 per cent stake in an oilfield joint venture. — Reuters