Between 2002 and 2010, Petroleos de Venezuela (PDVSA) obtained additional income of more than $97 billion, representing a 61 percent increase in revenue compared to that obtained under the old oil and gas framework.

The statement was made by the Minister of People’s Power for Energy and Oil Rafael Ramirez during a presentation of the financial statements of the state-owned oil company for 2009.

The implementation of measures such as the promulgation of the new Hydrocarbons Law in 2002, the increase in royalties from 16.33 percent to 30 percent for PDVSA and 1 percent to 16.33 percent for the former strategic partnerships, the new extraction tax and export registration, the migration of operating agreements and strategic partnerships, joint ventures, the change in income tax from 34 percent to 50 percent, and the contribution of extraordinary prices are some of the factors that led to the increases in income.

The new type of joint ventures allows 94 percent of income to go to the Venezuelan state and that PDVSA maintain total control and a majority stake in operations.

Ramirez insisted that this scheme is not a bad deal for the private sector, but also produced major gains (more than one billion dollars) for investors working with PDVSA in the exploitation of hydrocarbon resources.

Another significant difference is the direct contribution of PDVSA to the social development of the country, said Ramirez, which would have been unthinkable in the past.

Between 2004 and the first half of 2010 the total reached more than $61 billion in accumulated contributions, including those to the National Development Fund (Fonden), the Fund for Social and Economical Development (Fondespa),and specific projects and programs for housing, infrastructure, agriculture, and communities.

PDVSA, Press and Communications Office of the Embassy of the Bolivarian Republic of Venezuela to the United States / August 4, 2010