CARACAS, (Reuters) – Joint ventures between private firms and Venezuela’s state oil company PDVSA will not pay a windfall tax on new output until they have recovered their investments, the oil minister said yesterday.
A hike in the OPEC member’s windfall oil tax was unveiled by President Hugo Chavez on Thursday.
Oil Minister Rafael Ramirez told Reuters in an interview that joint ventures committed to boosting output from fields in South America’s biggest crude producer would not have to pay the tax on the extra barrels they pumped.
“The new developments are excluded and the projects that increase their production. The criteria is that the companies that are bringing money to increase output will not be liable,” he said.
