Venezuela Oil Tax May Pare Chevron Investment, Universal Reports

Chevron Corp. will take into account Venezuela’s new oil-price tax when considering investment in projects in the country, El Universal reported, citing Ali Moshiri, the company’s president for Latin America and Africa.

President Hugo Chavez in April modified Venezuela’s oil tax laws by swapping out its old system of royalties and instead charging a levy of 80 percent or 95 percent on revenue above $70 and $100 a barrel.

Chevron will not pull out of existing projects and expects to begin producing 50,000 barrels a day from its Carabobo fields in the Orinoco Belt by September 2012, El Universal said, citing Moshiri. Production in the Carabobo fields may increase by 50,000 to 100,000 barrels every two year once initial production is started, Moshiri said, according to El Universal.

Oil Minister Rafael Ramirez said in May he expected the Carabobo fields to have 50,000 barrels a day of early production with joint venture partners this year.

To contact the reporter on this story: Charlie Devereux in Caracas at cdevereux3@bloomberg.net.

To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net

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