Related Articles
Forward article link
Share PDF with colleagues

Tax move by Venezuela's President Hugo Chavez

Chavez boosts state's take from the oil patch

PRESIDENT Hugo Chavez has unveiled a revamp of the Venezuela’s upstream regime, hiking the already-hefty 60% tax rate on oil exports to as much as 95%. But the massive rise is not as onerous as it looks and may not prompt an exodus from the nation’s oil patch. Under the new regime, a 95% tax will be levied on oil exports when prices exceed $100 a barrel. The price is based on the Venezuelan basket, an average price of six domestic crudes, rather than international benchmarks such as Brent. The progressive tax kicks in when prices hit $70 a barrel, with an 80% rate applying to the excess, increasing to 90% when the basket price goes over $90/b, and hitting 95% when the $100/b threshold is r

Also in this section
Serica sanguine on Iran sanctions
13 July 2018
The firm's historic links to Iran are in the spotlight as US sanctions resume
The return of cautious optimism in the North Sea
13 July 2018
The UK’s North Sea hub, braced for production declines, has received a boost from new investments and revived interest from the supermajors
China loans make Venezuela’s outlook more precarious
12 July 2018
Patience is wearing thin among both China and other trading partners