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Thursday, 21 August, 2008, 19:50 GMT | more prices >>

Halliburton keeps wary eye on Venezuela



By Upstream staff 

Halliburton's chief financial officer said today his company is not looking for too much exposure in Venezuela following President Hugo Chavez' plans to take control of some of the country's oil projects.

"The Venezuelan market is one that I think everyone in the energy business is keeping a very close eye on," Christopher Gau said in remarks to a Credit Suisse Group investor conference in Vail, Colorado, that was broadcast on the internet.

Halliburton would be carefully managing its exposure in Venezuela, he said, but there is a "limited appetite for it" and it is unlikely a lot of new cash will be deployed in the region.

Chavez vowed to strip controlling stakes held by companies including BP, Chevron and ExxonMobil in the country's Orinoco belt by 1 May.

Halliburton provides drilling services to companies like Petrozuata operating in the Orinoco belt. It first entered that market in 1940.

Chavez' plan decreases reliance on the integrated oil companies and may increase dependence on oilfield services firms, but potential problems like the repatriation of profit will limit interest, Gaut said.

"We're not keen to build up a lot of cash that is not readily convertible to dollars," Gaut said.


Thursday, 08 February, 2007, 19:20 GMT  | last updated: Thursday, 08 February, 2007, 19:20 GMT

No over-exposure: the Venezuela's play for Halliburton
 

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