Venezuela Continues Nationalization Spree

The government of Hugo Chavez says it has nationalized oil lubricants firm Industrias Venoco, its subsidiaries and fertilizer company Fertinitro. The nationalization of the companies is being done to “reduce the prices of lubricants” as “PDVSA produces lubricant bases and then these private companies buy them and resell them at 4-5 times the original price.” Venoco officials could not be reached for comment. US-based Koch, which holds a 35% stake in Fertinitro, says it has not been told about the nationalization. Italy’s Snamprogetti holds a 20% in Fertinitro and Venezuelan state-run petrochemical company Pequiven holds 35%.