Post Tagged with: "pdvsa"

Source: Houston Chronicle

Sanctions on Rosneft unit threaten Venezuela’s vital oil trade

Houston Chronicle U.S. sanctions on Rosneft Trading SA threaten Venezuela’s ability to export oil, but pose only a limited threat to the Russian energy giant’s wider business. The Geneva-based trading arm of Rosneft PJSC, was targeted by the U.S. for helping to sell the commodity that bankrolls the regime of President Nicolas Maduro. The move could have a significant effect on the flow of Venezuelan crude to China and India, where the Russian energy giant has a stake in a refinery. Yet there were no signs yet that oil supplies to Europe will be hit. “For Rosneft as a whole there shouldn’t be too much interruption,” said Brian O’Toole, a senior fellow at the Atlantic Council and who previously worked in the Treasury Department’s sanctions unit. However, the company’s Swiss unit appears to be “largely kaput,” he said. Rosneft denounced the sanctions, saying its operations in Venezuela don’t violate any[Read More…]

February 19, 2020 - 1:00 pm Closing Bell Story, Crude Oil News, Energy News, International
Source: Houston Chronicle

Seized oil cargo is latest twist in Venezuela’s political fight

Houston Chronicle A crude tanker stuck at sea for over a year has become the latest front in the battle over Venezuela’s oil riches after being seized last week. Citgo Petroleum Corp., led by appointees of Venezuelan opposition leader Juan Guaido, was weighing filing an insurance claim last week for theft after a tanker holding almost 1 million barrels of oil was seized by Venezuela, according to a person familiar with the matter. The contested oil, purchased by Citgo and loaded on the tanker Gerd Knutsen, floated offshore Venezuela for more than a year. In December, a shadow board of Citgo directors chosen by President Nicolas Maduro attempted to seize the cargo but was blocked by a U.S. court. The roughly 960,000 barrels of Venezuelan crude that was once bound for a Citgo refinery in the U.S. was instead discharging in the Port of Jose at a terminal run by[Read More…]

February 17, 2020 - 1:30 pm Closing Bell Story, Crude Oil News, Energy News, International
Source: Reuters

Exclusive: Venezuela’s PDVSA steps up fuel shipments to Cuba as shortages bite

Reuters MEXICO CITY/HAVANA – Venezuela’s state energy firm PDVSA has been shipping more oil this month to close ally Cuba, as tighter U.S. sanctions have worsened fuel shortages on the Caribbean island, according to sources and internal company documents seen by Reuters. Six vessels, most of them owned by PDVSA’s maritime arm, have exported an average of 173,000 barrels per day (bpd) of Venezuelan crude and fuel to Cuba so far this month, according to Refinitiv Eikon data and PDVSA’s documents. At least two more cargoes are planned for the remainder of the month, according to the documents and data. In January, PDVSA’s exports to Cuba dipped to their lowest since mid-2019, at just 56,600 bpd. “There are more vessels setting sail to Cuba in the past two weeks,” said a ship supervisor working at a port on Venezuela’s western coast. “They are going in and out very fast,” he[Read More…]

February 14, 2020 - 12:00 pm Closing Bell Story, Crude Oil News, Energy News, International
Source: nbcnews.com

Venezuela rounds up US oil executives as Guaidó visits DC

Houston Chronicle MIAMI (AP) — Six American oil executives under house arrest in Venezuela were rounded up by police hours after President Donald Trump met Venezuelan President Nicolás Maduro’s chief opponent at the White House, according to family members of the men. Alirio Zambrano said early Thursday that the executives of Houston-based Citgo were abruptly taken from their homes last night by the SEBIN intelligence police. Zambrano, the brother of two of the six detained men, said their current whereabouts are unknown. “We demand to know they are safe but more importantly their freedom!” Zambrano said on social media, adding that he was very worried about the detainees. The State Department and Maduro’s government have yet to comment. But the move comes two months after the men were granted house arrest and just hours after Trump welcomed opposition leader Juan Guaidó to the White House in a show of support[Read More…]

February 7, 2020 - 9:00 am Closing Bell Story, Energy News, International, People
Source: Reuters

India’s Reliance says purchases of Venezuelan oil have been approved by the U.S.

Reuters NEW DELHI – India’s refining firm Reliance Industries (RELI.NS) on Thursday said its purchases of Venezuelan crude have been reported and approved by the U.S. government after American officials warned oil firms about their activity in Venezuela a day earlier.   The United States on Wednesday said oil companies, including Reliance, Russia’s Rosneft (ROSN.MM), Spain’s Repsol (REP.MC) and U.S.-based Chevron Corp (CVX.N), need to tread cautiously in their activities in Venezuela, in an attempt to ramp up pressure on Venezuelan President Nicolas Maduro. “We are in frequent communications with U.S. government officials regarding Venezuela and continuously keep them apprised of our actions,” a Reliance representative said in an email to Reuters. Washington imposed sanctions early last year on state-run oil firm PDVSA in an effort to oust Maduro, whose re-election in 2018 was viewed as a sham by most Western Hemisphere nations. The White House on Wednesday hosted opposition[Read More…]

February 6, 2020 - 2:30 pm Closing Bell Story, Crude Oil News, Energy News, International
Source: Reuters

Venezuela’s PDVSA, in default, says total debt remained unchanged in 2019

Reuters CARACAS – Venezuela’s state-run oil company PDVSA said its financial debt fell less than 0.1% in 2019 from the prior year to some $34.5 billion, though it remained in default on its bonds as sanctions freeze it out of the global banking system. PDVSA, which is short for Petroleos de Venezuela S.A., has stopped paying interest on most its bonds, and together with Venezuela’s government has accumulated billions of dollars in late interest payments. The company’s announcement, in the form of an advisory in a local newspaper last week, said it owed almost $25.2 billion to bondholders, up slightly from $24.7 billion at the end of 2018. PDVSA said its commercial debts with foreign joint venture partners, including Chevron Corp and China National Petroleum Corp [CNPET.UL], dipped to $2.65 billion by the end of 2019, down from $2.66 billion at the end of the prior year. The company, which[Read More…]

Source: Reuters

Exclusive: PDVSA’s partners act as traders of Venezuelan oil amid sanctions – documents

Reuters CARACAS/PUNTO FIJO, Venezuela – Venezuela, its oil exports decimated by U.S. sanctions, is testing a new method of getting its crude to market: allocating cargoes to joint-venture partners including Chevron Corp (CVX.N), which in turn market the oil to customers in Asia and Africa. This would not violate sanctions as long as sale proceeds are used for paying off a venture’s debts, according to three sources from joint ventures. They said this approach could help Venezuela overcome obstacles to producing and exporting oil. Venezuela’s oil exports fell 32% last year as the U.S. government blocked imports by American companies and transactions made in U.S. dollars. PDVSA was forced to use intermediaries for crude sales as Washington pressured Venezuela’s Indian and Chinese customers to halt direct purchases. The sanctions were designed to oust Venezuelan President Nicolas Maduro after most Western nations branded his 2018 re-election a sham. By acting as[Read More…]

January 13, 2020 - 3:00 pm Closing Bell Story, Crude Oil News, Energy News, International
Source: Reuters

Venezuela opposition cuts deal to delay possible Citgo seizure

Reuters Venezuela’s opposition has reached a deal with the custodians of a bond issued by state oil company PDVSA to prevent bondholders from seizing U.S. refining subsidiary Citgo, the bond’s collateral, until May, according to court filings and a source. The opposition-appointed PDVSA board, which is recognized in the United States as the company’s rightful representation, last month sued in the U.S. District Court for the Southern District of New York to annul PDVSA’s 2020 bonds VE151299784=. The deal to delay litigation in the case between PDVSA and the defendants, bond trustee MUFG Union Bank and collateral agent Glas Americas, laid out a schedule in which fact discovery would extend until Feb. 10, followed by a period of expert depositions before a hearing on May 5. Judge Katherine Polk Failla agreed to the arrangement, known as a forbearance agreement, last Friday, filings showed. Before the deal, PDVSA was at risk[Read More…]

Source: Reuters

PDVSA, Chevron to turn Venezuela crude blending plant back into upgrader: sources

Source: Reuters CARACAS (Reuters) – Venezuelan state oil company PDVSA and Chevron Corp plan to turn their joint venture Petropiar plant back into a crude upgrader, after months operating as a less complex blending facility, three people familiar with the operation said. The companies plan to begin producing Hamaca-grade synthetic crude for export at the plant early next year, said the people, who spoke on the condition of anonymity. Petropiar stopped producing Hamaca earlier this year and has been making heavier Merey crude, mostly for the Asian market, since July. Petropiar once made up to 210,000 barrels-per-day (bpd) of Hamaca out of tar-like oil from the OPEC nation’s Orinoco belt, one of the world’s largest oil reserves. The extra-heavy crude needs to be either upgraded or blended with lighter grades at facilities near the Jose terminal before being exported. But PDVSA struggled to find markets for that grade after the[Read More…]

Source: Citgo

Citgo’s New CEO Confident in an Uncertain Time

From The Houston Chronicle Houston’s Citgo Petroleum is under attack on multiple fronts. Creditors for its parent company want to seize its refineries. It’s at the center of a fight for control over Venezuela. The Justice Department is investigating it and its parent company’s role in an alleged foreign bribery scheme. And its facing mounting pressure to do something about six of its former executives detained in Venezuela for nearly two years. In the midst of this legal and political turmoil, the has selected one of its own former leaders and a veteran of the oil industry to help it continue to weather the storm of uncertainty. It was a sense of personal duty that pulled Carlos Jorda back to Citgo, 17 years after he served on its board of directors. Jorda said he felt an obligation to serve his former employer and to the government of opposition leader Juan[Read More…]

Source: Citgo

U.S. Court Confirms Citgo Board Appointed by Venezuela’s Opposition

From The Houston Chronicle In a victory for Venezuela’s opposition government, a U.S. judge confirmed Citgo Petroleum’s board of directors appointed by Juan Guaido, squashing socialist leader Nicolas Maduro’s efforts to regain control over the Houston oil refiner. On Wednesday a Delaware judge issued a final order approving the Guaido board, who have been effectively leading Citgo since the opposition leader appointed the board members in February. Owned by the Venezuela state oil company PDVSA, Citgo is considered the South American country’s most prized foreign asset and a key a piece in the political battle between socialist leader Nicolas Maduro and Guaido. Both sides agree the president of Venezuela has the authority to appoint the board of directors for Houston-based Citgo Petroleum but clashed over who constitutes the legitimate president of the economically-ravaged country. The Maduro administration, which has accused the opposition of trying to steal Citgo, sought to use[Read More…]

Source: Citgo

CITGO Board Appoints Former Venezuelan Oil Executive as CEO

From The Houston Chronicle CITGO’s board of directors has appointed former Venezuelan oil executive Carlos Jorda as CEO of the embattled Houston refining company. In a statement released on Wednesday morning, the company’s board reported that the year-long search for a new CEO ended Jorda being selected for a role. A fomer executive with the Petroleos de Venezuela, S.A., or PDVSA, Jorda also held an executive role with the state-owned oil company’s U.S. subsidiary PDV America and previously served as chairman of the board for CITGO. “The board was searching for a CEO with a solid professional background in operations and who could guide CITGO during this unprecedented time,” CITGO Chairwoman Luisa Palacios said in a statement. “With his understanding of the company, its shareholder and the geopolitical landscape in which the company operates, we believe that Carlos Jorda is the right person for the job.” Headquartered in Houston, CITGO[Read More…]

Source: Citgo

Citgo to Appoint New CEO to Navigate Political, Legal Turmoil – Sources

From Reuters Citgo Petroleum Corp has selected Carlos Jorda as its next chief executive, according to three people familiar with the matter, turning to a seasoned refinery expert and native Venezuelan to run a company facing legal attacks and working under U.S. sanctions against parent Petroleos de Venezuela (PDVSA). Citgo cut ties with PDVSA earlier this year after U.S. President Donald Trump’s administration sanctioned the state-run company and recognized Juan Guaido, Venezuela’s congress chief, as the nation’s legitimate leader. Citgo officials loyal to President Nicolas Maduro were ousted and new boards for PDVSA and Citgo were named by the Venezuelan congress in February. An appointment could be announced as soon as this week, after Citgo’s board votes on the selection process, according to one of the sources. Guaido, asked by reporters at a briefing outside the National Assembly office which nominations he is going to make, said: “We will announce[Read More…]

Venezuela Begins Expansion of Crude Joint Venture with China

Venezuela Begins Expansion of Crude Joint Venture with China

From Reuters A Venezuelan oil joint venture with a state-owned Chinese company has started an expansion project to boost output to 165,000 barrels per day (bpd), President Nicolas Maduro said on Thursday, from a current capacity of 110,000 bpd. Sinovensa, owned by PDVSA subsidiary Venezuelan Petroleum Corp (CVP) and China National Petroleum Corp (CNPC), produces extra-heavy Orinoco crude and blends it with lighter oil to produce medium-grade Merey. “Thanks always to China, for all of this effort and all of this cooperation,” Maduro said in a televised broadcast that included a delegation of Chinese officials. PDVSA said in a statement that a second phase of the project would take capacity to 230,000 bpd.     Blended crude grades are widely sought in Asian markets, where PDVSA is increasingly sending its crude production in the wake of Trump administration sanctions that have effectively halted sales of Venezuela oil to the U.S.[Read More…]

Right-Wing Groups Ask Trump Not to Intervene With Citgo

Right-Wing Groups Ask Trump Not to Intervene With Citgo

From The Houston Chronicle A bevy of right-wing groups are asking the Trump administration not to intercede on behalf of the Venezuelan opposition government to keep Citgo Petroleum from being seized and auctioned. The Houston-based refiner Citgo is owned by Venezuela’s state oil company, and it’s considered a valuable asset to help Venezuela rebuild if there’s regime change in favor of the Trump-backed Juan Guaido opposition government. However, a U.S. federal appeals court ruling this week said a defunct Canadian mining firm that was owed $1.4 billion by Venezuela may seize the shares of Citgo, triggering a chain of events that could auction Citgo off to the highest bidder, potentially including other U.S. refiners such as San Antonio-based Valero Energy or Ohio-based Marathon Petroleum. Barring further appeals, executive action from the White House may be the best way to keep Citgo from being seized as a result of the court[Read More…]

Source: Citgo

Venezuela Faces the Loss of Citgo – and Desperately Needed Dollars

From The Houston Chronicle Venezuela could lose its largest U.S. asset after a court allowed a Canadian gold miner to seize shares of Citgo Petroleum Corp.’s parent to satisfy an arbitration award. A U.S. appeals court ruled on Monday that Crystallex International Corp. may seize U.S.-based stock of Citgo’s parent, which is part of Venezuela’s state-owned oil company, to cover a $1.4 billion award over the nationalization of gold fields. Unless reversed on appeal or blocked by the Trump administration, the decision would allow Crystallex to auction the shares to satisfy Venezuela’s unpaid debt to the Canadian company. That means the country, in the grip of its worst recession, could lose control of the refiner that processes Venezuelan crude into desperately needed hard currency. It also complicates efforts by interim President Juan Guaido to retain control of Venezuelan assets including Citgo while waging a power struggle with current leader Nicolas[Read More…]

Venezuela’s Guaido Pledges to Protect Chevron Assets if Trump Does Not Renew License

Venezuela’s Guaido Pledges to Protect Chevron Assets if Trump Does Not Renew License

From Reuters Venezuelan opposition leader Juan Guaido said on Tuesday he would seek to protect Chevron Corp’s (CVX.N) assets in the country if the United States does not renew a license allowing the company to operate despite sanctions on the OPEC nation’s oil sector. The Trump administration slapped sanctions on state oil company PDVSA [PDVSA.UL] in January as part of a bid to cut off cash flow to socialist President Nicolas Maduro and pressure him to leave power. A license allowing Chevron to keep operating its four joint ventures with PDVSA expires on July 27. Guaido, the head of the opposition-controlled National Assembly, in January invoked the constitution to assume a rival presidency, arguing Maduro’s 2018 re-election was illegitimate. In a decree published by his office, he said a possible decision not to extend the license “constitutes an event of force majeure” that could nonetheless “allow the illegitimate regime of[Read More…]

To Keep Venezuela Oil Afloat, Venezuela Will Blend Domestic, Imported Oil

To Keep Venezuela Oil Afloat, Venezuela Will Blend Domestic, Imported Oil

From Reuters VIENNA — Venezuela will stick to its plan of blending domestic and foreign crude to maintain and even increase oil production and exports in the face of sanctions prohibiting U.S. companies from buying the country’s oil, oil minister Manuel Quevedo said on Tuesday. State-run oil company PDVSA in June began tests to focus exports almost entirely on the crude grade preferred by some Asian markets, Merey heavy crude, after shipments of oil and refined products fell in May following U.S. sanctions, according to internal documents seen by Reuters. “Our plan is to recover. We have internal strategies… One of them is to continue blending (to produce) the product we export the most, Merey crude. We will continue blending our own crudes and will also import crude,” Quevedo said on the sidelines of a meeting between OPEC and non-OPEC countries in Vienna. Quevedo said sanctions imposed in late January[Read More…]

July 3, 2019 - 5:03 am Closing Bell Story, Crude Oil News, Energy News, OPEC, Trade
Source: Citgo

Citgo Gets U.S. Subpoena Related to Venezuela Bribery Probe

From Bloomberg American unit of PDVSA has pledged full cooperation with probe, Businessman last week admitted to bribery for contracts Citgo Petroleum Corp. received a subpoena from the Department of Justice stemming from an investigation into bribery in Venezuela, indicating that the U.S. government is finally turning its attention to the company after years of prosecuting individuals. The subpoena was handed down on May 14, two weeks before Jose Manuel Gonzalez Testino pleaded guilty to paying bribes to win business from Venezuela’s state-owned oil company, according to people familiar with the situation, who asked not to be identified because the matter hasn’t been made public. The Miami executive became the 17th person to plead guilty in a U.S. government investigation into bribery at Petroleos de Venezuela SA, the corporate parent of Citgo, admitting to a violation of the Foreign Corrupt Practices Act, conspiracy and failure to report foreign bank accounts, Justice[Read More…]

June 3, 2019 - 6:40 am Closing Bell Story, Downstream, Energy News, International
Operator of Venezuelan PDVSA’s Fleet Seeks to Detain Tankers to Collect on Late Payments: Reuters

Operator of Venezuelan PDVSA’s Fleet Seeks to Detain Tankers to Collect on Late Payments: Reuters

From  gCaptain/Reuters German shipping firm Bernhard Schulte Shipmanagement (BSM) has moved to legally detain three of Venezuelan PDVSA’s oil tankers to collect on late payments owed to it by the state-run oil company, according to a document seen by Reuters and sources close to the decision. PDVSA has struggled for years to pay its bills due to falling crude output and limited cash flow, leaving it owing numerous firms worldwide. That was even before the United States in late January imposed tough sanctions on Venezuela’s oil exports, which have since dropped by more than 40 percent. BSM operated 13 of the 32 tankers owned by PDVSA and two Very Large Crude Carriers (VLCCs) jointly owned by PDVSA and PetroChina, according to the companies. In March, BSM started withdrawing staff from PDVSA’s tankers to reduce its exposure to Venezuela and later returned some of them to the firm. Hamburg-based BSM is[Read More…]

May 24, 2019 - 11:54 am Closing Bell Story, Energy News, Transportation
Venezuela’s PDVSA Braces for Low Output from Crucial Crude Upgraders

Venezuela’s PDVSA Braces for Low Output from Crucial Crude Upgraders

From Reuters Venezuelan state-owned oil company PDVSA expects its crucial crude upgraders to operate well below capacity this month, according to industry sources and documents seen by Reuters, as U.S. sanctions and energy blackouts hit the OPEC nation’s oil industry. Venezuela depends on the upgraders, which are mostly operated by joint ventures with foreign companies, to convert the extra-heavy crude oil produced in the Orinoco Belt into exportable grades usable in overseas refineries. Together, they have a capacity of some 700,000 barrels per day. Prolonged power outages have been adding to problems blending and exporting crude, as PDVSA’s main oil port, Jose, in northeastern Venezuela remained paralyzed. The Petropiar and Petromonagas upgraders, part-owned by U.S. oil major Chevron and Russian giant Rosneft respectively, have not fully restarted since a March 7 blackout. Petrocedeno, part-owned by France’s Total and Norway’s Equinor, stopped working after a second blackout on March 25, as[Read More…]

April 5, 2019 - 4:24 pm Closing Bell Story, Crude Oil News, Energy News
Venezuela Must Pay Conoco More Than $8 Billion: World Bank

Venezuela Must Pay Conoco More Than $8 Billion: World Bank

From Reuters Venezuela must pay ConocoPhillips more than $8 billion to compensate for the 2007 expropriation of oil assets by the late socialist leader Hugo Chavez, the World Bank ruled on Friday, making the U.S. energy company the largest victor in claims stemming from nationalizations in the OPEC country. The company may have to fight to collect. Venezuela has balked at paying in other arbitration cases and may challenge the World Bank tribunal’s decision. Conoco previously has used legal seizures of Venezuelan oil assets to enforce its claims. The oil company had sought up to $30 billion for the takeover of three oil projects more than 10 years ago, according to a World Bank report. The tribunal, known as ICSID, found the takeover unlawful in 2013 and two years ago rejected the OPEC-member nation’s request for reconsideration. The tribunal said Conoco could not seek double recovery. It was not immediately[Read More…]

March 8, 2019 - 5:30 pm Closing Bell Story, Crude Oil News, Energy News
U.S. Sanctions Venezuela’s PDVSA

U.S. Sanctions Venezuela’s PDVSA

Move cuts off Venezuela’s main cash source The U.S. government announced sanctions on Venezuela’s PDVSA today, marking a major increase in the administration’s pressure campaign against Maduro’s regime. While the U.S. has sanctioned many individuals involved in Venezuela’s government, it has historically been reluctant to directly sanction PDVSA. This reluctance is largely because, despite the diplomatic hostility between the two countries, the U.S. and Venezuela are major trade partners when it comes to oil. The U.S. imported an average of 505 MBOPD from Venezuela in 2018, making it America’s fifth-largest source of crude oil. The U.S. is Venezuela’s main cash source, providing 75% of the country’s revenue from oil shipments. While Vene… Login or click here to subscribe Username or E-mail Password Remember Me     Forgot Password

France’s Maurel & Prom to invest $400 million in Venezuela oil venture: PDVSA

France’s Maurel & Prom to invest $400 million in Venezuela oil venture: PDVSA

From Reuters France’s Maurel & Prom will invest $400 million to acquire a 40 percent stake in a Venezuela oilfield joint venture called Petroregional del Lago, state oil company PDVSA [PDVSA.UL] President Manuel Quevedo said on Monday. Maurel & Prom said in a December statement it had agreed to pay 70 million euros ($80.5 million) to buy the stake from Royal Dutch Shell Plc and that it would invest 350 million euros ($402.5 million) in boosting output. “It will participate together with PDVSA with $400 million in investment to increase production in Lake Maracaibo,” said Quevedo in a broadcast from Venezuela’s presidential palace in the company of Maurel & Prom President Michel Hochard. “We have signed agreements to ensure the necessary investments at the start of 2019 … to boost production to 70,000 barrels per day,” he said, without making any reference to Shell. The field in 2018 produced around[Read More…]

January 9, 2019 - 3:21 pm Closing Bell Story, Crude Oil News, Energy News
Venezuela Faces Fresh Blow With Ship-Fuel Rules Threatening Exports

Venezuela Faces Fresh Blow With Ship-Fuel Rules Threatening Exports

From Bloomberg New rules forcing ships to use cleaner marine fuels may deal yet another blow to cash-strapped Petroleos de Venezuela SA, an exporter of high-sulfur fuel oil. From Jan. 1, 2020, vessels will have to switch to less-polluting bunker fuel or be fitted with equipment to curb emissions, under new International Maritime Organization rules. That’s expected to weaken demand for the high-sulfur residual fuel oil produced by PDVSA, pushing prices lower at the same time that the cost of importing clean fuels rises, said Mel Larson, a consultant at KBC Advanced Technologies Inc. As refiners prepare to produce IMO-compliant fuels that rely on low-sulfur crude oils, sour crude produced by Venezuela and Mexico may be sold at deeper discounts. Meanwhile, demand for lighter distillates, including diesel, is expected to increase. That ultimately will take a toll on the economies of Venezuela, Mexico and Ecuador that rely on imported diesel and gasoline. “IMO[Read More…]

October 1, 2018 - 8:00 am Closing Bell Story, Midstream
Venezuela Eyes First-Ever Refining of Foreign Oil

Venezuela Eyes First-Ever Refining of Foreign Oil

From Reuters Venezuela is considering producing fuels from foreign crude oil for the first time, according to planning documents seen by Reuters, as the country struggles to meet its obligations despite having the world’s largest crude reserves. State-run oil company PDVSA may process up to 57,000 barrels per day (bpd) of foreign crude in June at the country’s largest refinery, according to a monthly refining plan which was viewed by Reuters on Wednesday. The output would help fulfill fuel contracts for Russian, Chinese and other customers and reduce purchases of fuels for domestic use, the documents showed. PDVSA did not respond to a request for comment. PDVSA has been falling short on fuel exports in recent years due to a lack of lighter crudes to refine, a shortage of spare parts, poor maintenance, and management upheaval at its domestic refining network. PDVSA also lost access in May to inventories produced[Read More…]

June 14, 2018 - 2:41 pm Closing Bell Story, Energy News, International
Rosneft Looks to Collect on a 49.9% Stake in U.S. Oil Company

Rosneft Looks to Collect on a 49.9% Stake in U.S. Oil Company

PDVSA may transfer 49.9% claim as part of  debt settlement Russian state-owned oil giant Rosneft may end up owning U.S. downstream operator CITGO if Venezuela’s state-owned PDVSA is unable to pay back dues on a $1.5 billion loan from the Russian company. A 49.9% stake of CITGO, which is owned by PDVSA’s U.S. subsidiary, was used as collateral in December of last year in a loan with the Russian oil giant, just months after the company used the other 50.1% as collateral in a bond operation. The company owns three refineries with total capacity of 749 MBOPD, three fully-owned pipelines, six jointly-owned pipelines and a number of terminals along the East and Gulf Coasts, according to the company. CITGO’s parent company PDVSA has been struggling with lower oil prices since the beginning of 2015, which put Venezuela’s highly oil-dependent economy into a tailspin. With the picture for PDVSA not looking[Read More…]

Venezuela Unraveling: PDVSA Misses Bond Interest Payments

Default would be catastrophic for Venezuela From Stratfor Venezuela’s state-run oil and natural gas company, Petroleos de Venezuela (PDVSA), has been ailing for some time. Low oil prices and political disarray have made it difficult for PDVSA to repay its debts, but the government has managed to do so by contracting food imports. The fate of the company has far-reaching implications for the country’s stability. On Nov. 21, it came to light that the company had missed interest payments worth $404 million on bonds maturing in 2021, 2024 and 2035. It is not yet clear whether PDVSA’s failure to pay the bond interest stems from a cash flow problem. And the missed interest payments do not mean that PDVSA is in default. The company has a 30-day grace period ending in the second week of December. If it does not meet the payments by that date, then it will likely fall into default. Depending[Read More…]

November 22, 2016 - 8:48 am Closing Bell Story, Energy News

AP Reports U.S. Rig Seizures in Venezuela

Associated Press (AP) reported on November 1, 2013 that Venezuelan officials seized two rigs operated by Houston-based Superior Energy Services (ticker: SPN). The report says a state judge was joined by four members of the police and National Guard and ordered the removal of snubbing units to be relocated to sites operated by Petroleos de Venezuela S.A. (PDVSA), the country’s state-run oil company. Jesus Centeno, local operations manager for Superior in the city of Anaco, told AP by phone: “It was like a thief breaking into your house, asking for the keys to the safe and then expecting you to help carry it away. Their argument was that we were practically sabotaging national production.” AP said PDVSA believed the move was necessary for the nation’s development and welfare. According to Centeno, PDVSA owes SPN millions dating as far back as December 2012, and negotiations between the sides broke down in[Read More…]

November 5, 2013 - 5:01 pm Oil and Gas 360 Articles, OPEC