This allows the government to seize or nationalize all oil-services companies or to create joint-venture deals with those firms, Angel Rodriguez, a senior lawmaker and head of the congressional energy commission, told.
Rodriguez informed that congress has given the measure emergency priority, meaning a final approval would happen in 30 days.
Once the law is signed, Petroleos de Venezuela SA (PdVSA) will be able to take possession of these operations.
Reward for these assets will be determined by the book value of assets, deducting payroll costs, and will be payable in cash or government debt instruments, as per the document.
The congressional proposal comes at a time when PdVSA has struggled to pay local and foreign contractors for oil-well services such as drilling.
In some cases, companies have stopped operations until they receive payment for services rendered. PdVSA has been in negotiations of late to agree on new rates for oil rigs and gradually pay money owed to such companies as Halliburton Co. (HAL) and Schlumberger Ltd. (SLB).
As talks progress, Oil Minister Rafael Ramirez has made clear the state will take over all equipment from foregn companies that cease operations as a way to push Venezuela into paying past-due bills.
Chavez in 2007 ordered the nationalization of key oil ventures along the Orinoco river belt, and offered foreign companies involved minority stakes in new joint-venture deals.
Many companies went along but ExxonMobil Corp. and ConocoPhillips chose to leave the country and have taken Venezuela to arbitration over the defeat of their assets.
