UH-OH: LOBBYIST DAN COATS’ CLIENT LIST INCLUDES OIL COMPANY THAT PARTNERS WITH VENEZUELAN DICTATOR HUGO CHAVEZ

Coats Lobbied For Harvest Natural Resources, Which Does Business With Tyrannical Socialist Regime In Venezuela

Coat’s Lobbying Firm Paid Nearly Half a Million Dollars By Harvest Natural Resources


Today, the Democratic Senatorial Campaign Committee is seizing on a new report that Dan Coats, a Virginian lobbyist and likely Senate candidate from Indiana, lobbied for an oil company partnered with dictator Hugo Chavez of Venezuela for three years, from 2005 to 2008. Coats’ lobbying firm, King & Spaulding, has been paid $470,000 for their efforts on behalf of Harvest Natural Resources, an oil and gas company which does business with the corrupt Chavez regime in Venezuela.

In fact, when Coats began working for Harvest, the company’s sole income source came from Venezuela. Over half of Harvest’s profits went to fund Chavez’s corrupt dictatorship, with the Venezuelan state owning 60% of the company. Venezuela is headed by socialist dictator Hugo Chavez, an enemy to the United States and its allies.

“Today’s report detailing Dan Coats’ lobbying activity with a company that does business with a corrupt dictatorship is a bombshell,” said Deirdre Murphy, DSCC National Press Secretary. “It’s bad enough that Coats was making bank off of a big oil company, but it’s egregious that he would lobby for an oil company that partners with Hugo Chavez. Now that he’s mulling a move back to Indiana to run for office, today’s news should make all Hoosiers question who else Coats lobbies for in Washington, DC.”

Numerous news outlets are reporting Coats is likely to run for the United States Senate from Indiana. Coats is a federally registered lobbyist whose client lists include banks, private equity firms, oil and petroleum companies and defense contractors. Coats, a Washington DC insider who lined his own pockets as taxpayers spent $700 billion bailing out Wall Street banks, has not voted in Indiana in the past ten years and currently resides in Falls Church, Virginia.

Coats Lobbied for Company In Business With Venezuelan Government. From 2005 until 2008, Coats lobbied for on behalf of Harvest Natural Resources for oil and gas issues in Venezuela. [Lobbying Disclosure Act Database]

Harvest Has Principal Operations in Venezuela and Russia. According to a press release, “Harvest Natural Resources, Inc. headquartered in Houston, Texas, is an independent oil and gas exploration and development company with principal operations in Venezuela and an office in Russia.” [Harvest Natural Resources release, 3/1/06]

When Coats Began Working For Harvest, Company’s Sole Income Source Was From Venezuela. In 2005, when Coats began lobbying for the company, Harvest’s oil fields in Venezuela were the company’s only source of income. [AP, 8/12/05]

Coats Firm Has Been Paid Nearly Half a Million Dollars in Fees. King & Spalding, Coat’s Firm, has been paid $470,000 for their efforts on behalf of Harvest. [Lobbying Disclosure Act Database]

Venezuelan Government Owns a Controlling Stake in Harvest’s Operations in the Country. In September 2007, Harvest Natural Resources signed a contract with a unit of a Venezuelan state oil company to convert its operations in that country to a new structure under which Venezuela would take a controlling stake. [Reuters, 9/12/07]

· Harvest Owns 32% Of Company; Venezuelan State Owns 60% of Company. Harvest owns a 32% equity interest in Petrodelta, S.A., an incorporated joint venture between the Venezuelan state-owned Corporación Venezolana del Petroleo S.A. (“CVP”) (60%), Harvest (32%) and Oil & Gas Technology Consultants (Netherlands) Coöperatie U.A. (“OGTC”), a controlled affiliate of Venezolana de Inversiones y Construcciones Clerico, C.A. (“Vinccler”) (8%). [harvestnr.com; Reuters, 9/12/07]

Harvest: Conversion to State-Owned Enterprise “Plays to Our… Strengths.” On Harvest website, the company says that the takeover by the state of their oil enterprises made their business more substantial and plays to the company’s strengths. The website reads, “With conversion, our business in Venezuela is more substantial and should play to our technical and operational strengths.” [harvestnr.com]

Harvest Would Pay 50-60 Percent of Profits – in Taxes Alone – to Fund Chavez’s Socialist Regime. In 2008, Venezuela moved Tuesday to take a greater cut of windfall oil profits, approving a 50 percent tax on foreign oil companies when crude tops $70US a barrel. The tax rate would rise to 60 percent when the average monthly price for benchmark Brent crude exceeds $100US, according to the bill approved by Venezuela's National Assembly. [Courier-Post, 4/16/08]