Introduction

On February 26, 2007, Venezuela's President Hugo Chavez issued a Decree-Law[1] ordering foreign oil companies engaged in Orinoco upgrade projects[2] to adapt their corporate structure to a joint venture in which PDVSA, Venezuela's national oil company, will have a 60% equity interest instead of a 40%.[3] "If they do not accept, they are free to leave," declared Chavez on February 1, 2007 when he first announced this new ultimatum.[4] This Decree-Law, which came shortly after Venezuela's National Assembly granted Chavez special powers on January 31, 2007 to rule by decree ...