Captain's Quarters: Venezuela Seizes Oil Projects From Foreign Firms

re: "Venezuelan president-cum-dictator Hugo Chavez continued his confiscation of private property and foreign investment yesterday by seizing oil projects and assimilating them into the state-owned petroleum organization. Delivering on his pledge to create a socialist state along the same lines as Fidel Castro's Cuba, Chavez told foreign-owned firms that they now had to accept a minority stake in their own properties...[snip]...Chavez's diktat will take legal effect in four months, although Chavez says he'll seize the projects by May 1. The companies have that long to negotiate terms with Chavez, who has an army to occupy the oil fields, making negotiations somewhat one-sided. The oil producers will likely try to strike a bargain with Chavez, but it makes little sense to do so. They will only be delaying the inevitable; Chavez will eventually steal it all from them. They should dismantle their operations and leave forthwith, taking the losses now and leaving Chavez to explain why the workers have lost their jobs as well as the expertise necessary to produce their primary export..."...