Here is Rafael Ramirez’ explanation of why the oil service companies were nationalized:
“These activities were in he hands of third parties that would tell us: If you don’t pay me my invoice ..then i I will leave with my boats and my ships and let’s see how your produce oil”
Of course, he does not say that PDVSA had not paid these companies for six to none months and even a year in some cases. When PDVSA does not pay the workers of these companies, or does not invest in maintenance, then the boats will stay, but theyw ill not even float. He also says that these companies will be paid book value because they were nationalized, not “purchased”.
Oh, I see!
Robolutionary logic at it’s best.
The Devil's Excrement 
June 11, 2009 at 9:45 am
Tying executive pay to some financial measure, sounds a lot better than letting the shareholders vote on it. Fortunately, Geithner is not seeking pay caps.
June 10, 2009 at 1:17 pm
Does this sound like Chavista logic ?
une 10 (Bloomberg) — The Obama administration announced it will seek new powers for the Securities and Exchange Commission to force firms to let shareholders vote on executive pay and make directors who set compensation more independent, without setting any outright caps.
Today’s proposal, subject to congressional approval, would cover all U.S. public companies. President Barack Obama has long supported giving shareholders nonbinding votes on bonuses, salaries and severance packages. The administration also will name a “special master” to monitor compensation plans for firms receiving exceptional assistance in the financial rescue.
The changes are aimed at reducing systemic risks and quelling a political uproar over bonuses paid to executives whose companies received federal rescue funds. Treasury Secretary Timothy Geithner has repeatedly blamed pay standards tied to short-term profits for contributing to the worst financial crisis since the 1930s.
“Companies should seek to pay top executives in ways that are tightly aligned with the long-term value and soundness of the firm,” the Treasury chief said in a statement today.
Geithner said the administration won’t seek pay caps or a continuing role in compensation oversight, in remarks after a meeting with SEC Chairman Mary Schapiro, Federal Reserve Governor Daniel Tarullo and executive-compensation specialists at the Treasury. There are also no plans to propose legislation other than the measures announced today.
Also: What’s new in Peru ??
June 10, 2009 at 10:52 am
The sad part is that, as the first line says (“robolutionary logic at its best”), Ramirez probably believes in the logic of its argument.
I read somewhere that the end of the world would be the consequence of the actions of a Sancho Panza rather than a Nicolas Maquiavelo.
In the case of Venezuela, I am afraid that comparing hard-core chavistas (at least those in the government) with Sancho Panza is to have in very low esteem the latter.
June 9, 2009 at 1:04 pm
And I’m sure, many had already taken the potential loss (robolutionary logic) into account.
June 9, 2009 at 10:11 am
“Book Value” would mean that PDVSA receivables on the contractors’ books will be valued at their face (nominal) value.
I’m sure many would have gladly taken a discount on those particular assets.
June 9, 2009 at 8:43 am
Agree with Concerned and Deanna, Sitting it out is the right strategy right now. It will be interesting to know who hangs on until the end.
June 9, 2009 at 8:21 am
In connection with this post, please also see (if you are interested) my post in http://www.lasarmasdecoronel.blogspot.com (in Spanish).
June 9, 2009 at 7:05 am
So Mr. Ramierez, after experiencing over a 30% increase in revenues in 2008, how is it that you find yourself delinquent in your obligations and owe some US$7.0 bn to oil service companies?
June 9, 2009 at 6:47 am
and if they simply don’t have the money? Can’t they just take over something else?
June 9, 2009 at 6:22 am
“Zeppo”?
Ramirez
June 8, 2009 at 9:33 pm
Who is Zeppo?
June 8, 2009 at 9:29 pm
We are sitting on several critical supply orders for PDVSA projects awaiting the required payment. It has been many months with no movement at all in what should be a standard purchase.
I fear they have no money at all.
June 8, 2009 at 8:56 pm
Chavez, Morales and Ortega…The three stooges.
June 8, 2009 at 8:37 pm
My version is that the off shore service companies had enough of paying the “COMMISION” up front to Chavezista accounts in an offshore bank and then getting stiffed for the rest! I have a few thoughts as to the Demons these guys have provoked, non if which are good.
June 8, 2009 at 7:36 pm
Rondo, would you mind developing your ideas. Sounds like you are at a PSUV gathering. Where is the substance, please emphasize.
June 8, 2009 at 5:58 pm
As an outside contractor, I am waiting for the NEW PDVSA to be born. When that happens, you will see a flood of new technology and equipment to rebuild PDVSA into what it once was.
Ramirez is lying to cover up the mess he made of PDVSA. Soon it will unravel and explode in his face. It’s just a matter of time.
I just read where the Ramirez/Chavez financial team emptied CITGO’s coffers. I think that was the very last piggy bank they could steal from.
The unrest and pressure is building fast and furiously, soon it will explode.
I hope soon than later for all my Venezuelan friends.
June 8, 2009 at 5:23 pm
Es necessario escucha a Chavez! Chavez es el mejor presidente en la historia de Venezuela! Viva CHavez!! Viva Morales y Ortega!!!
June 8, 2009 at 2:57 pm
how could chávez care about it? i doubt he has more common sense or basic economic understanding than his minions. these in turn have one thing in common with el comandante: focussing on their personal agendas.
nationalizing these private companies an thus PDVSA’s de facto creditors solo corre la arruga…
June 8, 2009 at 2:55 pm
“whether Chavez knows that he is being lied to or if he is part of the problem.”
Let’s say he is being lied to, if after 10 years he hasn’t been able to figure he is being lied to then wouldn’t it also be his fault?
June 8, 2009 at 1:31 pm
Whoever works in the oil industry in Venezuela knows that almost everything Ramirez is saying here is not true. My biggest question is whether Chavez knows that he is being lied to or if he is part of the problem.
June 8, 2009 at 1:13 pm
Agree with concerned.
June 8, 2009 at 10:56 am
Not a bad plan if you:
1. Have no morals, business or personal
2. Have a license to steal with no repercussions
3. Live only for today with no interest beyond tomorrow
4. Have an ego much larger than your competence
5. Could not care less about the workers and only line your pockets
6. Have reached a point of no return and know you will go to prison if you lose control
At a time when PDVSA needs outside resources to survive, it is slamming the door shut. All outside investors should sit this out until the “New” PDVSA’s demise. Then return and help transform Venezuela into the successful country it wants to be.