VENEZUELA - Petrochemical Sector.

President Hugo Chavez on June 25 marked the creation of a national petrochemical company after he toured a house made of plastic and promised to build thousands more like it for Venezuela's poor. Chavez said the new Corporacion Venezolana de Petroquimica (Pequiven), now was a company independent from the Venezuela's state-owned Petroleos de Venezuela (PDVSA) and will step up production of items ranging from plastics to fertilisers. He said some US$10 bn in investment were needed for petrochemical projects.

Chaves said: "From today on, Pequiven is independent. We are going to turn Venezuela into a petrochemical power". As he visited the El Tablazo petrochemical complex in the western state of Zulia on June 25, Chavez signed a series of agreements for petrochemical projects, including one to begin producing the plastic houses. Pequiven officials said they were to produce 1,300 plastic homes this year, and as many as 30,000 next year.

Chavez warned that companies exporting Venezuelan fertilisers must understand that the priority will now be on meeting domestic needs. Any concerns the companies may have about contracts signed with previous Venezuelan governments can be handled by the courts, Chavez said, stressing that the country will prioritise making goods for itself rather than exporting raw materials, as in the past. He added: "Venezuela will never again be anyone's colony". He defended a move to increase taxes and royalties on foreign companies pumping oil in Venezuela, saying "we are defending our interests". Venezuela is the world's fifth largest oil exporter, but the petrochemical industry has traditionally received less emphasis.