Venezuela demands $235-mil in taxes from 4 more foreign companies

Caracas (Platts)--30Dec2005

Venezuela has presented back tax bills totaling $235-mil to four more
foreign oil companies as the Seniat tax authority continues its audit of the
sector, an official said Friday.

     France's Total and Spain's Repsol YPF were hardest hit, with bills for
Bolivars 231-bil ($107.4-mil) and Bolivars 244-bil ($113.4-mil) respectively,
the Seniat's chief of oil activities Diana Vargas told Platts in a telephone
interview. The notifications were served Thursday, Vargas said.

     Japan's Teikoku also was notified of a charge for Bolivars 7-bil
($3.3-mil) for one of its oil fields, on top of a previous bill for $18-mil
issued for another field in November. Earlier this week, Brazil's state oil
company Petrobras was given notice of a bill for Bolivars 22.5-bil
($10.5-mil).

     The bills are for income taxes on operating service agreements dating
back to 2001 that the Seniat says should have been paid at a rate of 50%
instead of the 34% rate that was originally calculated. There are 32 operating
service agreements with state-owned PDVSA that Venezuela plans to convert into
joint venture projects early next year.

     Total operates the Jusepin field, in the eastern state of Monagas, which
produces 38,000 b/d. It has a 55% share and BP holds the other 45%.

     Repsol is one of the biggest foreign operators, with four fields
producing a combined total of around 105,000 b/d. It is currently in a dispute
over one of those fields, the 10,000 b/d Quiamare-La Ceiba, which it partners
with US major ExxonMobil. ExxonMobil is the only company that has not yet
agreed to change the operating agreement into a JV with PDVSA in 2006.

     Teikoku produces around 4,000 b/d from its Guarico East and Sanvi-Guere
fields, as well as more than 80,000 Mcf/day of natural gas.

     Petrobras also has four fields, pumping a total of over 70,000 b/d.

     The Seniat has now presented back tax bills to 15 oil companies totaling
over $600-mil. Four more bills will be handed out towards the end of January
to companies including majors Chevron and BP, Vargas said.

		--Steve Ixer, newsdesk@platts.com

     For more information, take a trial to Platts Global Alert at
http://globalalert.platts.com.

Please visit: www.platts.com

Their coverage of energy matters is extensive!!.