http://www.boston.com/dailynews/340/world/Oil_exports_stop_negotiations_:.shtml

Oil exports stop, negotiations stall and protesters face off as Venezuela crisis deepens

By Niko Price, Associated Press, 12/6/2002 01:57

CARACAS, Venezuela (AP) Venezuela's oil exports ground to a halt, negotiations stalled and protesters faced off on the streets as prospects dimmed for a peaceful resolution to a strike designed to unseat President Hugo Chavez.

After withstanding three days of the nationwide strike with few visible problems, the world's fifth-largest oil industry descended into chaos Thursday. Captains anchored their tankers offshore, tugs stopped towing and dock crews stopped loading oil and natural gas.

Acknowledging it couldn't fill orders, Venezuela's state oil monopoly freed buyers and sellers from fulfilling their contracts, said Jorge Kamkoff, a vice president of the company. Crude oil futures at the New York Mercantile Exchange rose as the crisis deepened.

The Energy Ministry admitted for the first time that oil loading was being delayed, but claimed all plants were operative. A top Venezuelan oil official met with representatives of the U.S. Embassy to reassure them about long-term supply.

Chavez vowed to use the military to protect the industry, which accounts for 75 percent of exports and half the government's income.

Both sides warned of violence as Chavez supporters and strikers demonstrated in separate rallies in eastern Caracas. National guard troops blocked roads and bridges between the two demonstrations, preventing clashes.

Violence between the two sides killed 19 people during a similar strike on April 11. Dissident officers deposed Chavez the next day, but loyalists restored him two days later after an interim government abolished the constitution, triggering a popular rebellion. Resentment over the April revolt still runs deep among Venezuela's polarized people.

Peace talks led by Cesar Gaviria, secretary general of the Organization of American States, broke down on Wednesday just as the two sides were finalizing an agreement to end the strike, withdraw the army from the streets and let courts decide on a proposed referendum over Chavez's presidency, a source close to the talks told The Associated Press.

There were no negotiations Thursday. Gaviria has become a lone conduit between the two sides, and officials fear the crisis would descend into violence without his presence, the source said.

''We're living a kind of civil Cold War, because we haven't taken to arms yet, but to move from cold to hot all you need is a single badly aimed gunshot,'' said political analyst Alfredo Keller. ''We are moving toward violent confrontation.''

The oil industry began to come apart Wednesday afternoon, when the captain of a tanker announced he had anchored his ship complete with 280,000 barrels of gasoline off the western city of Maracaibo. By Thursday night, at least six other captains had done the same.

The fate of the Pilin Leon, the tanker that began the rebellion, was unclear. The government said it had seized the ship, but First Pilot Javier Colina said navy officials who boarded told the crew they would look for replacements for the sailors, then left.

Tugboats in Maracaibo Lake, where 1 million barrels of crude are produced daily, joined the strike, refusing to bring ships into port, according to a worker at the largest tugboat company there, who spoke only on condition of anonymity.

All workers at shipping terminals stopped loading tankers, said shipping agent Jesus Cabrera. Another shipping agent, who spoke only on condition of anonymity, said exports from all ports in Venezuela stopped as of 3 p.m. Thursday. The agent said he had spoken with officials in Caracas and managers at all major docks.

Evidence of the shutdown began to emerge outside Venezuela. Marine officials in Curacao, where Venezuela's oil company operates a refinery, said two tankers scheduled to arrive from Venezuela didn't show up Thursday.

Chavez called the anchoring of the Pilin Leon ''an act of piracy'' and said he would use the armed forces to keep the oil industry operating. He accused strike leaders of seeking to privatize the Petroleos de Venezuela S.A. oil monopoly, known as PDVSA.

''Assaulting PDVSA is like assaulting the heart of Venezuela,'' Chavez said in a nationally broadcast speech. ''Nobody stops Venezuela.''

-- Anonymous, December 06, 2002

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http://www.boston.com/dailynews/339/world/Venezuela_s_navy_seizes_pira te:.shtml

Venezuela's navy seizes pirated oil tanker; strikers march to demand new elections

By James Anderson, Associated Press, 12/5/2002 19:08

CARACAS, Venezuela (AP) The navy seized a government oil tanker pirated by a rebel crew, as President Hugo Chavez vowed his military would stop sabotage of Venezuela's oil industry, the world's fifth- largest.

But a four-day-old general strike virtually halted the loading of oil tankers, forcing Venezuela to free buyers and sellers from fulfilling oil contracts, said Jorge Kamkoff, a state oil company vice president.

Exports stopped because 23 tankers were unable to load cargo, officials said. In Caracas, pro- and anti-Chavez demonstrators rallied and troops stood by to deter more political violence in Venezuela, a top oil supplier to the United States.

Oil exports are critical to Venezuela's economy, accounting for 75 percent of total exports and half of government income.

Crude oil and refined products futures at the New York Mercantile Exchange rose Thursday partly because of events in Venezuela. The price of oil for January delivery rose 58 cents to $27.29 a barrel.

Opposition leaders called the strike Monday to demand an immediate vote on Chavez's leftist presidency, citing economic and political turmoil. Chavez refused and he accused strike leaders on Thursday of seeking to privatize the Petroleos de Venezuela S.A. oil monopoly, known as PDVSA.

''Assaulting PDVSA is like assaulting the heart of Venezuela,'' Chavez said in a nationally broadcast speech. ''Nobody stops Venezuela.''

Chavez called the protest aboard the tanker Pilin Leon named after a former Miss World ''an act of piracy.'' Capt. Daniel Alfaro, a PDVSA employee, anchored his tanker filled with 280,000 barrels of gasoline off the western city of Maracaibo on Wednesday.

Navy officials seized the ship Thursday and were talking with its crew, said Gen. Alberto Gutierrez, head of the army command in Zulia state. The vessel didn't block shipping channels in Lake Maracaibo, where 1 million barrels of crude are shipped daily. Protesters on tug boats circled the Pilin Leon, blowing whistles to support the crew.

Alfaro and other shipping interests said at least five other tankers had anchored in protest. More were joining Thursday, he said.

Pilin Leon pilot Javier Colina said late Thursday the government hadn't arrested the tanker crew but was looking for replacements.

Zulia Towing, the largest private tugboat company on Lake Maracaibo, yanked all 13 of its tugs from service to join the strike, a worker told The Associated Press on condition of anonymity. The company serves ships on both domestic and international routes, including oil tankers.

Jesus Cabrera, a Petroleos de Venezuela shipping agent, said the nation's terminals stopped loading tankers Wednesday.

Chavez assured Venezuelans and international clients he specifically mentioned the United States that he would use the armed forces to keep the oil industry afloat.

He accused strike leaders of pursuing the same strategy they used to topple him in April: Street confrontations, a general strike and an oil industry shutdown, all backed by Venezuela's news media.

''Every time these sectors call a strike it's because they have a card up their sleeve, a hidden knife,'' Chavez said.

National Guard troops deployed in Caracas two keep pro- and anti- Chavez rallies from clashing.

Strike leader Carlos Fernandez, head of Venezuela's largest business federation, accused the government of placing snipers inside an oil company building in Caracas to fire at opposition protesters. Another leader, labor boss Manuel Cova, claimed secret police tried to raid his home early Thursday but were stopped by protesting neighbors.

Violence between the two sides killed 19 people during a similar strike on April 11. Dissident officers deposed Chavez the next day, but loyalists restored him two days later after an interim government abolished the constitution, triggering a popular rebellion.

Strike leaders cited those incidents in announcing more opposition demonstrations for Friday and throughout the weekend.

Opposition marches spread to cities across the country, and several clashes occurred among demonstrators, Chavez supporters and police forces.

The strike and the government's refusal to endorse early elections have derailed peace talks sponsored by the Organization of American States, the United Nations and the Atlanta, Georgia-based Carter Center.

The European Union and ambassadors from 22 OAS member governments issued statements Thursday backing OAS Secretary General Cesar Gaviria's efforts to restart negotiations.

On Maracaibo's boardwalk, dozens of people blew whistles, banged pots and pans and flashed car headlights to support the Pilin Leon crew.

''This is the most important development of the strike so far. We have to support them,'' said Adriana Pena, sitting exhausted on the boardwalk after demonstrating through the night.

-- Anonymous, December 06, 2002