Taiwan has instructed its state-run oil firm CPC to defend its oil exploration rights in Venezuela as Caracas is seeking to nationalize foreign-controlled oil fields, the Central News Agency (CNA) said on Monday, according to dpa. "CPC will join large foreign oil firms in handling it and will seek the maximum rights, while avoiding political risks due to our lack of diplomatic ties with Venezuela," CNA quoted Economics Minister Steve Chen as saying. "The economics ministry will encourage CPC to expand overseas oil exploration in Libya, Chad, Ecuador, Venezuela and our Central American allies like Guatemala," he said. According to CNA, Venezuelan President Hugo Chavez has ordered all foreign-controlled oil fields to be nationalized, including two oil fields which are owned by jointly owned by foreign oil firms and CPC. The are the Paria West block owned by Conoco Phillips and CPC, and Paria East block owned by Italian oil firm ENI and CPC. CPC's stake in each block is less than 10 per cent, the United Evening News (UEN) said. Venezuela is pushing for Conoco Phillips and ENI to hand over their majority stake in the two oil fields to Venezuela's national oil firm Petroleos de Venezuela (PDVSA), but the two oil firms have refused to do so. The UEN said that Conoco Phllips and ENI do not rule out seeking international arbitration to protect their oil drilling rights, and CPC may follow suit. Taiwan imports 99.7 per cent of all the oil it consumes. Besides signing long-term oil import contracts, CPC has been exploring for oil in foreign countries. In recent years, CPC has been drilling for oil in Chad, Ecuador, Indonesia, Australia, Venezuela and the Taiwan Strait.
