Venezuela’s Oil Income Boosted by US $5.8 Billion
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T&T Venezuela Bolivarian Solidarity
Aug 4, 2007, 6:42:33 AM8/4/07
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The
Bolivarian government’s measures in the oil field have boosted income
by US $5.8 billion, which will be aimed at social investment and
integrated development.
President Hugo Chávez explained that such measures were first implemented in October 2004, when oil transnational company royalties, as low as 1 percent by then, were increased to 16.6 percent, thus resulting in an extra US $1.9 billion income, and to 30 percent in July 2005, boosting income by US $745,000 per year, no to mention a 2006 extraction tax generating extra US $ 400 million.
In October 2006, income taxes were increased to 50 percent; this measure is responsible for US $1.1 billion of the extra income. Likewise, steps implemented by the Venezuelan government include the nationalization of the Orinoco Oil Belt, which was in the hands of transnational oil companies, with PDVSA (Venezuela’s state-owned oil company) holding a minority share.
Since the Bolivarian government nationalized the Orinoco Oil Belt’ projects, Venezuela has nearly doubled its share to 78 percent from 40 percent, thus obtaining US $ 800 million of the extra income.
According to the Venezuelan president, the nation’s resources were formerly handled by the oligarchy and the empire; now, it is used in the benefit of the country’s majority.
During his weekly radio and TV show ¡Aló, Presidente!, President Hugo Chávez said that these extra earnings have helped develop Venezuela’s strategic companies, as well as Venezuela’s aluminium, wood, and cement industries; and buy helicopters, Sukhoi fighter planes and integrated air defence systems.
Likewise, these resources will fund Bolivarian schools and high-schools, new universities, and health and social government programs.
Ramírez still in charge of PDVSA
President Hugo Chávez talked about actions against the President of PDVSA, Rafael Ramírez, seeking to remove Ramírez from the company, and ruled out such a possibility.
He announced that Ramírez, who is also Minister of Popular Power for Energy and Oil, will still be in charge of PDVSA.
President Hugo Chávez explained that such measures were first implemented in October 2004, when oil transnational company royalties, as low as 1 percent by then, were increased to 16.6 percent, thus resulting in an extra US $1.9 billion income, and to 30 percent in July 2005, boosting income by US $745,000 per year, no to mention a 2006 extraction tax generating extra US $ 400 million.
In October 2006, income taxes were increased to 50 percent; this measure is responsible for US $1.1 billion of the extra income. Likewise, steps implemented by the Venezuelan government include the nationalization of the Orinoco Oil Belt, which was in the hands of transnational oil companies, with PDVSA (Venezuela’s state-owned oil company) holding a minority share.
Since the Bolivarian government nationalized the Orinoco Oil Belt’ projects, Venezuela has nearly doubled its share to 78 percent from 40 percent, thus obtaining US $ 800 million of the extra income.
According to the Venezuelan president, the nation’s resources were formerly handled by the oligarchy and the empire; now, it is used in the benefit of the country’s majority.
During his weekly radio and TV show ¡Aló, Presidente!, President Hugo Chávez said that these extra earnings have helped develop Venezuela’s strategic companies, as well as Venezuela’s aluminium, wood, and cement industries; and buy helicopters, Sukhoi fighter planes and integrated air defence systems.
Likewise, these resources will fund Bolivarian schools and high-schools, new universities, and health and social government programs.
Ramírez still in charge of PDVSA
President Hugo Chávez talked about actions against the President of PDVSA, Rafael Ramírez, seeking to remove Ramírez from the company, and ruled out such a possibility.
He announced that Ramírez, who is also Minister of Popular Power for Energy and Oil, will still be in charge of PDVSA.
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