Venezuela's PDVSA, Chevron to address joint venture workers after license

The meeting, to be done at the joint oil project Petropiar in the Orinoco Belt, will communicate new managers and explain maintenance work and operational improvements to be done to facilities in the near time, the people said. PDVSA, which owns the majority of four joint ventures with Chevron, is expected to retain the existing projects' presidents, while Chevron would appoint general managers to some of them, the sources said.

Venezuela's top energy officials and executives of U.S.-based Chevron in the country plan to address this week their joint ventures workers in a meeting to detail management and operational changes, four sources close to the matter said. Chevron was granted a six-month expanded license by the U.S. Treasury Department in November as part of Washington's effort to encourage political talks between President Nicolas Maduro and the opposition towards an election next year.

Chevron has said it does not expect significant capital investment in the coming six months in Venezuela due to restrictions in the license, which allows exports to the United States but prevents proceeds from reaching Venezuela's coffers. The meeting, to be done at the joint oil project Petropiar in the Orinoco Belt, will communicate new managers and explain maintenance work and operational improvements to be done to facilities in the near time, the people said.

PDVSA, which owns the majority of four joint ventures with Chevron, is expected to retain the existing projects' presidents, while Chevron would appoint general managers to some of them, the sources said. The projects' ownership will remain untouched. Chevron declined immediate comment. PDVSA and Venezuela's oil ministry did not reply to a request for comment.

The employees, which are paid by PDVSA according to Venezuelan laws, will continue working under the same terms. However, the parties are in talks to expand some benefits and encourage better performance at facilities, especially in a key crude upgrader in the Orinoco, which will supply heavy crude to the United States once PDVSA allocates cargoes. Venezuela's Hydrocarbon Law mandates joint operation of all oil joint ventures in Venezuela. Even though Chevron hopes to expand its say in the joint ventures, both the U.S. license and Venezuela's legal framework limit what Chevron can do.

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