Venezuela to Stop Reimbursing Oil Companies' Costs in Dollars

Ouch! Get 'em Hugo!

May 15 (Bloomberg) -- Venezuelan President Hugo Chavez forbid the state oil company to reimburse in dollars the operating costs of international oil companies working in the country, one month after he raised their income taxes. The measure affects 19 companies, including ChevronTexaco Corp. and France's Total SA, that operate 32 fields for state oil company Petroleos de Venezuela SA, Chavez said during his weekly broadcast from the southwestern state of Barinas. The companies had been reimbursed in dollars for domestic operating costs such as cars, food, travel expenses and clothing. ``This is a violation of our foreign exchange law,'' Chavez said. ``As of today, Petroleos de Venezuela won't pay one cent in dollars to those international companies. Absolutely nothing.''

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