Posted on 12/08/2002 5:47:59 PM PST by Axion
SITUATION REPORTS - December 09 2002 00:26 GMT - Venezuela's Energy and Mines Ministry issued a resolution Dec. 8 that authorizes the armed forces (FAN) to seize and operate private fuel transportation companies immediately, Globovision television network reports. The resolution reportedly authorizes military and civilian personnel to seize control of tanker trucks used to transport gasoline from tank farms to retail gasoline outlets. However, a legal source in Caracas said the ministry's resolution is an unconstitutional violation of private property rights.
Meanwhile, sources said private banks would remain closed Dec. 9 as the national strike against Venezuelan President Hugo Chavez continues for an eighth day. 00:17 GMT - Venezuelan opposition leaders have raised the stakes in still-suspended negotiations between the government of President Hugo Chavez and the Democratic Coordinator (CD), Caracas daily El Nacional reported Dec. 8. The opposition now demands Chavez's immediate resignation, new general elections and the nationally televised broadcast of the political negotiations, which are mediated by the head of the Organization of American States.
00:03 GMT - International shipping sources told Stratfor on Dec. 8 that 26 vessels are stranded on the Orinoco River or at Puerto Ordaz in eastern Venezuela, through which all state-owned iron, steel and aluminum enterprises realize their exports. State-owned companies which already have or are about to declare force majeure include Comsigua, Orinoco Iron/Venprecar, Siderurgica del Orinoco (SIDOR), and Venezolana de Aluminio (Venalum). Other companies, including Ferrominera Orinoco, Aluminios del Caroni (Alcasa), OPCO, Hevensa and Ferroven, likely will declare force majeure within hours as well. Sources also said that gas supply shortages in the Puerto Ordaz area likely will force the complete shutdown of ferroalloys and aluminum smelters in the area by Dec. 11 or 12.
Meanwhile, trading and shipping companies with vessels stranded on the Orinoco River or at Puerto Ordaz are advising customers in the United States, Mexico and the Far East to notify their clients that shipments are suspended due to force majeure declarations from their respective Venezuelan suppliers, according to Stratfor sources. The traders and shippers also are warning customers "to avoid engaging in any new sales commitments for Venezuelan-origin materials, and also to notify customers that shipments scheduled for delivery in December 2002 and January 2003 won’t be arriving on time." SITUATION REPORTS - December 08 2002 23:50 GMT - Sources in Caracas say nearly all domestic Venezuelan airlines have ceased operations, and that airport and oil industry personnel who handle jet fuel at the nation's commercial airports have joined the national strike against President Hugo Chavez. The government has ordered National Guard and other military personnel to take charge of the jet fuel transport and loading operations at airports.
Meanwhile, international air carriers are sharply reducing operations due to rapidly increasing security risks at all of the country’s international airports. Effective Dec. 9, American Airlines will reduce its flights to Venezuela to just three per day, with service only to Miami, and executives say no aircraft or flight crews will overnight in Venezuela until the political crisis ends.
23:49 GMT - Sources in Caracas tell Stratfor that Venezuelan President Hugo Chavez has decided not to appoint a new board of directors at Petroleos de Venezuela for the time being, seeking instead to concentrate all decision-making power in the hands of PDVSA President Ali Rodriguez. Chavez appears to have two objectives. First, he needs to contain the rapidly escalating political crisis within PDVSA by not appointing board members that striking managers already have said they would not accept. The second objective apparently is to neutralize Rodriguez politically, given his viability as a potential successor to Chavez, one source said.
23:45 GMT - The Venezuelan Petroleum Chamber, whose members include all private local and foreign companies that provide services to Petroleos de Venezuela, voted Dec. 8 to join the national strike against President Hugo Chavez after a heated six-hour meeting in which the chamber's president, Luis Rodriguez, attempted to water down endorsement of the strike or criticism of Chavez. According to Stratfor sources with first-hand knowledge of the meeting, Rodriguez is "extremely close" to PDVSA President Ali Rodriguez -- although they are not related -- and has been accused of obtaining sweetheart geophysics contracts from PDVSA and the Energy and Mines Ministry in return for supporting the Chavez regime. Caracas daily El Nacional recently published allegations that Rodriguez's company has engaged in illegal bid-rigging for oil service contracts.
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