Venezuela recalls “Chucuta” nationalization of the oil industry (+scam)

Published at: 01/01/2025 11:29 AM

On January 1, 1976, the Law that Reserves the Hydrocarbons Industry and Commerce to the State came into effect, a measure known as the “nationalization” of the oil industry by transferring to the Venezuelan State all the properties, plants and equipment of foreign companies operating in the country, including giants such as Shell and Exxon, as well as assets of domestic dealers.

The decision executed under the government of Carlos Andrés Pérez was presented as an act of national sovereignty and dubbed by the media as “the return of oil wealth”.

However, the reality behind this policy is that it was a “chucuta” nationalization, as stated by the Venezuelan oil expert and founder of the Organization of Petroleum Exporting Countries (OPEC), Juan Pablo Pérez Alfonso, in past interviews, who emphasized the limitations and concessions made to these transnationals.

The main milestones of the process include:

On August 29, 1975, the Executive created the "Law that Reserves the Hydrocarbon Industry to the State”.

The following day, he signed executive decree number 1,123 that created the company Petrleos de Venezuela, S.A. (PDVSA)

This law went into effect on January 1, 1976

He recognized multinational corporations with million-dollar compensation for the 8 years of operations that still remained.

It also awarded valuable contracts in terms of commercialization and technologies that assured the extinct dealers control over the nascent “nationalized” national industry.

The 14 foreign operators that were formerly under the guise of dealers, became “subsidiaries” of PDVSA

Creole was called Lagoven; Amoco, Amoven; Shell, Maraven; Phillips, Roqueven; Talon, Taloven; Mito Juan, Vistaven; Mene Grande Oil Company, Meneven; Las Mercedes, Guariven; Sun, Palmaven; Sinclair, Bariven; Mobil, Llanoven; Chevron, Boscanven; Texas, Delt

Decades later, President Hugo Chávez Frías denounced the “scam” committed under the supposed nationalization. In Chávez's view, what happened in 1976 was an agreement between national and international elites that perpetuated Venezuela's dependence on foreign corporations.

It was only in 2003, after the approval of the new Hydrocarbons Law and the defeat of a coup d'etat in 2002, that Venezuela began what the leader of the Revolution defined as “the true nationalization of oil”.

VTV/; Mazo News Team