Venezuelan congress railed against oil deal with US & French companies

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Venezuelan congress railed against oil deal with US & French companies

On Tuesday, the 9th of January, 2019, the Venezuela’s opposition ran congress had thrown brickbats at the possible merger between Venezuelan-state own oil company PDVSA and a little-known US company, chaired by a prominent Florida republican.

During the session, the Venezuelan congress issued a resolution that branded any deal between PDVSA and US, alongside French oil companies illegal, as the companies did not seek for lawmakers’ approval. According to the constitutional body of Venezuela, the oil field deals with French Maurel & Prom as well as, US company Erepla had violated the article 150, as any contract signed between the state and foreign companies had to be approved by the National Assembly, before that could take effect.

The slammed deals had been Venezuelan President, Maduro’s effort to revert the steep decline of country’s oil output, which had been crippling paralyzed economy, that was largely oil dependent. Maduro is unlikely to pass the bill through the Venezuelan congress, since the opposition had largely stripped off its power after 2016’s takeover.

However, the rejection would definitely create further legal complications for future governments of this socialist country. A lawmaker, Jorge Millan commented regarding the contracts, “They are giving concessions that violate the law. ”