Venezuela seeks oil investment after 2007 crusade

By Brian Ellsworth - Analysis

CARACAS (Reuters) - Less than a year after Venezuelan President Hugo Chavez launched a nationalization crusade, the OPEC nation is boosting efforts to bring in private oil investment amid growing energy-sector problems.

Venezuela has announced a string of deals with oil companies and the first oil field bidding round since Chavez took office in 1999, and industry sources report a marked change in tone from last year's wave of takeovers.

State oil company PDVSA may be seeking to stem growing cash flow and operational problems, only months after a wave of nationalizations that drove out two of the world's biggest energy companies.

Energy Minister Rafael Ramirez on Saturday spoke about the need for cooperation with private business after years of focusing on Chavez's leftist agenda to boost ties with other state oil companies.

"Now that we have completed this (nationalization) process we are ready to attract private capital," he said in a statement.

One oil sector contractor who asked not to be identified said PDVSA this year has been speeding up contract talks.

"Last year they were telling me, 'You'll never see this work again' -- and now it's all about extending contracts and negotiating rate increases," he said.

This year alone, PDVSA has signed deals with Royal Dutch/Shell (RDSa.L: Quote, Profile, Research, Stock Buzz), Total (TOTF.PA: Quote, Profile, Research, Stock Buzz) and Statoil (STL.OL: Quote, Profile, Research, Stock Buzz) for oil-field studies.