Adamant: Hardest metal
Saturday, March 29, 2003

Strike leader quits Venezuela-- The strike failed, but Ortega is unrepentant

BBC A key player in a strike which crippled Venezuela for two months has left the country for exile in Costa Rica.

Carlos Ortega was facing charges of rebellion and treason - charges that can be punished with 20-year jail sentences - when he walked into the Costa Rican embassy and asked for political asylum on 14 March.

The head of the one-million-member Venezuelan Labour Federation said he feared for his personal safety and was granted asylum.

On Thursday, Venezuelan television showed him boarding a plane bound for the Costa Rican capital San Jose, having been given a federal police escort to the airport.

Earlier, as he got into the car, he reportedly raised his fists in a final victory salute to a number of fellow government adversaries.

Others emerge

Another strike leader, Carlos Fernandez of the Venezuelan business confederation Fedecameras, is under house arrest facing treason charges.

A court ordered him to be released last week after deeming the evidence insufficient, but the attorney general has appealed the decision.

Seven former executives of the state oil company PDVSA emerged from hiding last week after a judge revoked warrants for their arrests on charges of interrupting the country's fuel supply.

President Hugo Chavez has allowed two other major political foes to leave the country over the past year:

  • Pedro Carmona, who briefly replaced him as president during a short-lived coup in April last year, was allowed to leave for Colombia

  • Naval officer Carlos Molina, who faced an investigation for his part in the coup, was granted refuge in El Salvador

Bill of billions

Before petering out in January, the strike severely affected oil exports and in some areas caused food and fuel shortages.

It is estimated to have cost the economy between $4bn and $6bn.

But Mr Chavez said he would never give in to demands that he resign or call a referendum on his presidency.

Nymex oil seen opening $1 up on fear of longer Iraq war

<a href=www.vheadline.com>Venezuela's Electronic news Posted: Thursday, March 27, 2003 By: PETROLEUMWORLD

Crude oil futures at the New York Mercantile Exchange are expected to open more than $1 a barrel higher Thursday, on growing fears that Iraqi production may stay off the market longer than many had expected as the war in Iraq drags on.

UK Air Marshal Brian Burridge reportedly said Thursday that it would take three months to restore oil production from Iraq's southern Rumailah field.

Allied forces have seized control of the 1.8 million-barrel-a-day field, and there been reports that oil could start flowing from the region even before the conflict is over. But Burridge dashed those hopes, saying the poor condition of the equipment in the filed will mean it will take much longer to restore production.

"They are in terrible condition," he said. "It will take three months and then we can begin pumping oil.

The comments come amid growing signs that the US-led war is likely to take much longer than many had expected, analysts said.

"People are talking about signs of war being extended longer than expected," said Tom Bentz, an energy analyst at BNP Paribas Futures in New York.

Nymex crude oil futures are expected to open $1 higher, while heating and gasoline futures are seen opening 300-350 points higher.

Also supporting prices are uncertainty over the outage of nearly 40% of Nigerian production and concerns about tight gasoline supplies ahead of the summer driving season, Bentz said.

All of those factors are likely to lift the front-month May crude futures to $30 a barrel, Bentz said. Once that psychologically important level is taken out, prices could surge as high as $31 a barrel, he added.

May-June Crude Spread Widens

In a sign of growing supply tightness, the nearby Nymex May-June spread has widened to nearly $2 a barrel. The spread had narrowed to less than $1 last week as prices tumbled on hopes of a quick end to the Iraq war.

Meanwhile, it remained unclear how quickly Nigerian output would return to normal.

The Ijaw militants battling Nigerian forces in the oil-rich Niger Delta called for a ceasefire Wednesday after the state government agreed to support their demands ahead of next month's general elections.

The move raised hopes that Nigeria's production, down 40% because of the violence, will quickly return to normal as oil companies resume operations.

But the three major oil companies have yet to restore production or return staff to the country, and traders say the production shut in continues to cause severe delays in oil loading out of Nigeria.

"There are still disruptions in Nigeria," one trader said. "It's very difficult to say where the delays are. April cargoes are also being switched around now. There have been a lot of date switches and no one seems to know where their cargoes are."

The situation is likely to remain unclear for some time, he added.

In overnight trading, May crude ended up $1.07 at $29.70, while April heating oil futures were up 289 points at 77.30 cents a gallon. April gasoline futures were up 353 points at 95.95 cents.

By Masood Farivar, Dow Jones Newswires; 201-938-2094; masood.farivar@dowjones.com

MIJ Minister and BIV must clarify fishy links with new Arab businessmen

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Thursday, March 27, 2003 By: Patrick J. O'Donoghue

Venezuelan business sectors claim that Interior & Justice (MIJ) Minister Diosdado Cabello is mixed up in the purchase of Eveba tuna co bases in Cumana (Sucre).   Eveba deputy president, Majed Khalil denies the charges alleging that the new owners have nothing to do with Cabello and that the purchase was business ... "a business opportunity." 

Rumors have been circulating for several weeks that Minister Cabello and new owner, Arab businessman Khaled Khalil are connected. 

Critics point to the ease with which Khalil received a hefty Banco Industrial de Venezuela (BIV) credit and ... according to media sources ... the Castro family sold Eveba to the Arabs for $30 million, even though its real value is estimated at $10 million. 

The Arabs paid $2 million in cash and the rest was made out through BIV loans.  However,  the BIV gave out $8 million because of liquidity problems but opened a credit line for  the remaining $20 million to be paid in 6 years. 

Khalil denies the loan, saying he paid with" fresh money." Political sectors are now asking the Minister to clarify his and BIV's role in the deal. Eveba is said to have 10-15% of the domestic tuna market.

Venezuelan Strike Leader Leaves for Asylum in Costa Rica

<a href=www.voanews.com>VOA News 27 Mar 2003, 21:49 UTC

Venezuelan labor and strike leader Carlos Ortega has left for asylum in Costa Rica, two weeks after taking refuge at its embassy in Caracas.

The opposition leader boarded a plane for San Jose Thursday after heavily-armed police escorted him from the diplomatic mission. His departure came one day after the Venezuelan government agreed to allow him to leave the country.

Mr. Ortega was one of the organizers of Venezuela's two-month general strike that failed in its bid to force President Hugo Chavez to resign and call early elections.

He went into hiding last month after the Venezuelan government sought his arrest on treason and rebellion charges for his role in the strike. Mr. Ortega later took refuge at the Costa Rican Embassy, saying he feared for his safety.

Mr. Ortega is the third major opponent of President Chavez to seek asylum. Last year, Colombia granted asylum to business leader Pedro Carmona - who briefly replaced Mr. Chavez during last April's failed coup against the populist president.

El Salvador granted asylum to retired naval officer Carlos Molina, who faced an investigation for his role in the coup.

Football: Venezuela to Play US in Friendly Match

<a href=www.voanews.com>VOA Sports 27 Mar 2003, 20:25 UTC

Venezuela is happy with the opportunity to play the United States in a soccer friendly on Saturday in Seattle. Venezuela has only one week to prepare for the match as they are ranked 69th in the world by FIFA. The United States is ranked 10th in the world.

It is Venezuela's first match since a 1-0 win over Uruguay in November. Better known for its baseball, Venezuela is slowly being recognized as a soccer nation after a series of upset wins during South American qualifying for the 2002 World Cup.

The chance to play the Americans came after Japan canceled a two-game tour, citing security reasons because of the war in Iraq. In their last meeting, Venezuela rallied from a 3-0 deficit to tie the United States 3-3 in the 1993 Copa America.

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