ConocoPhillips says Venezuela oil law changes insufficient to attract investment

Investing.com -- ConocoPhillips Chief Executive Officer Ryan Lance said Venezuela's recent modifications to its oil law remain inadequate to draw foreign investment, citing government revenue terms that could reach 95%.

The changes to Venezuela's hydrocarbon law allow the government to charge royalties up to 30%, taxes as much as 15%, and additional levies that increase the state's total take, Lance said in an interview.

"The current hydrocarbon law is not sufficient to attract a whole lot of investment," Lance said. "A 95% government take will not do it."

Venezuela's state oil company, Petróleos de Venezuela SA, recently distributed a proposed contract to foreign oil companies that favors the government on arbitration, taxes and deal termination, according to people familiar with the document.

Lance said the proposed terms resemble arrangements from before ConocoPhillips had $12 billion in holdings nationalized in 2007 under late President Hugo Chávez.

"It looks a lot like what we had before we got expropriated in 2007," he said. "It doesn't look like it's anywhere near what it needs to."

The contract terms are part of President Donald Trump's effort to revive Venezuelan oil production following the capture of former President Nicolás Maduro. The country's interim government is led by acting President Delcy Rodriguez.

Oil industry executives have requested the Trump administration address the contract issue in discussions with Venezuela's interim government, according to people familiar with the matter.

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