Archive for October 2nd, 2005

Miranda Orchid Show

October 2, 2005

This week was the Orchid Exhbit of the Miranda State Orchid Society,
one of the two big shows I attend and bring orchids to every year. I
usually just bring in a few plants to the Society’s stand and
contribute that way to their effort. This year, I picked some six
plants in flower and went over to the exhibit Thursday evening. Well,
it turned out that the society or its “friends” had no stand this year.
I innocently asked” “What do I do”. Their answer: “Set up your own
stand”. Ooops!

This is not as simple as it seems, first of all, I did not have
enough plants, second, I had no “plan” on how to set it up. What was
supposed to be an hour or so handing over my plants and helping set up a
stand became three hours plus of work. The first thing I had to do was
go home and get more plants, so that my stand would look “full”. That in
itslef took a while, even if I live close to where the show was taking
place. The good part was that by the time I got back, there was another
person with a similar problem with five or six plants. So we set up
together. It was fun and satisfying, but recall all of this happened on
Thursday evening and I had work on Friday and I ended up very tired.

I also spent all of Saturday going around with my camera, taking
pictures of the show. The results were not very satisfying, the
lighting was not great and my new camera had no flash. Thus, most
pictures taken without a tripod were not very good and some of those
taken with it had colors, particularly in the background, which I did
not like. But here are some of the results.

Above left: My own stand. I had a total of nine plants, five of
which won awards. My partner, Edmundo Lander, had six, three of which
won awards. I particularly enjoyed the first prize for my Cattleya
Jenmanii, which I have shown here
many times. Satisfying because it is the first time I win first price
for a Venezuelan Catlleya, there are so many of them and people have so
many of them too that is really hard to compete. In contrast my
Brazilian Cattelya Aclandie did not win in its group (Foreign
Cattleyas) and I thought it would, it took second prize. Above right: A
very dark colored Vanda that won first prize in its class.

Left beautiful picture of a Dpts. I loved the contrast. On the left, a Cattleya Luedemmaniana that won first prize.

Pretty showers of yellow flowers in these two Oncidums

Chavez presses for denationalization of the oil industry

October 2, 2005

Today President Chavez once again
told foreign oil companies
that are part of the service agreements that if
they don’t convert before the end of the year to a partnership, they can leave
the country.

As way of background, in the 90’s PDVSA sold off the rights to exploit certain
oil fields in an auction that brought in over US$ 2 billion to the country.
These agreements, were “service agreements”, the company would produce
oil and sell it to PDVSA. In order to give these companies and incentive to
invest, PDVSA fixed benchmarks above which the service companies would be paid
an extra amount.

Chavez campaigned against this so called “oil opening” claiming that
the country was giving up its sovereignty in the process. In May, the
government called on all these agreements to convert to a partnership under the
new hydrocarbons law. In these partnerships, PDVSA would hold at least 51% of
the company and the company holding the service agreement would have a
percentage based on how much it invested in the field since the original
agreements were signed.

Problem is, PDVSA has no money. So how would PDVSA capitalize its stake in the
company? The amazing answer is that the companies will OWN the reserves
in the field. For the first time since the oil nationalization bill of 1976, a
Government is giving away what that bill says is 100 percent owned by
and the Venezuelans. Talk about sovereignty!

This is only happening to please Chavez’ ego and get rid of the agreements
under the oil opening, as promised in his campaign. But what this represents is
truly giving up sovereignty as these oil companies will be able to register
their reserves in their balance sheets and Venezuelans will lose ownership of
their oil from a Government that claims to defend “their” interests.

So, why is it that these companies don’t want to convert to a partnership?
Easy, in order to convert, you give up your rights to the earlier contract which
the companies won in an auction and paying a bonus which ran in most cases in
the hundred million dollar level, and sign another “interim”
contract, which no longer contains a clause of international arbitration. Then,
you will negotiate with PDVSA how much your investment is worth and the
percentages of the new partnership will be decided. Thus, some companies don’t
want to take the risk of losing arbitration and have PDVSA determine a
percentage of the partnership that would be worse financially than the current

Remarkably, one of the
companies that has refused to sign the agreement is none other than Petrobras,
the oil company of what Chavez considers to be his friendliest state after Cuba.
But more remarkably, is that the law in Venezuela
does not require that you adapt retroactively to a new law, the new law only
applies to events after it is enacted.

In the words of oil expert from
Central University Mazhar Al-Shereida “I do not understand who is the
genius that reached the conclusion that it is better to convert some companies
(..) That have simple service contracts, where you pay them for the work done,
but has to hand over the oil to its owner who is the Venezuelan state, into
partners of 49% of the oil produced. Sovereign control in Saudi Arabia and Kuwait is 100% and we that are
searching for a new form of socialism are facilitating these multinationals
conditions that they can not find anywhere”. Adds Al-Shereida: “What
does the country gain from this? Why isn’t this being debated like it used to
occur in the IVth. Republic. “He also says that Caldera’s oil opening was
preferable, because no sovereignty was given up.

Similar thoughts are given by Heinz
Sonntag, the former Head of the Sociology
Center at Central University,
who questions the “opportunism” of the “brain” behind all
this, Vice-Minister Bernard Mommer. Sonntag claims Mommer told him he changed
nationalities in order to become Vice-Minister and says Sonntag: “If we
have to talk about an assault on the oil industry, which Mommer opposed in the
opening led by Giusti, the current maximum leader of the Bolivarian revolution
appears to be committing one of a more compelling gravity than the one proposed
by Luis Giusti (the former Head of PDVSA)”

the revolution, led by Chavez
denationalizes the oil industry for no reason other than fulfill
Chavez’ dream
and promise of getting rid of the oil opening. Of course, how it is
done is
irrelevant, even if it goes against the principles of those that
Chavez. That is the way autocracies work, the autocrat does what he
wants, as
long as he can get away with it. Unfortunately for all, he can get away
with it
in this case. And those that follow him, accept it because Chavez
wants it, even if they disagree with it. They will tell us later, they
did not understand. But we do.

Another lie for the gallery

October 2, 2005

On Friday from Brazil, Hugo Chavez said
that Venezuela had withdrawn US$4 billion from the US and moved it to
Europe because of the “threats”. Yesterday Cenbtral Bank Director
Domingo Maza Zavala said they had not approved
that and that it was their resposibility to make such decisions and
Chavez had no say in it. Maza even said that such a decison would be
based on profitability.

Another lie
for the ignorant gallery who will never know that Chavez is playing them for fools.

Bilingual rhyme on Francisco Toro’s return

October 2, 2005

Chavistas temblad!

Caracas Chronicles is back!