Maduro names new PDVSA leadership following “energy emergency”

Venezuela’s President Nicolas Maduro named new executives at Petroleos de Venezuela SA, a week after declaring an “energy emergency”. Venezuela said on Thursday a $2.04 billion award to ConocoPhillips over a decade-old nationalization was a “tough lesson”. Just as Venezuelan state-run oil company PDVSA was running out of an obscure product needed.

Venezuelan crude sales to the United States recovered in June from May as state-run PDVSA exported more. Company appointing a commission to revamp the state oil company. Petroleos de Venezuela SA, which relies heavily on U.S. oil to run its refinery in the island of Curacao.

A fire at the Isla oil refinery in Curacao run by Venezuela’s PDVSA. Venezuela’s national oil company PDVSA will use existing crude oil customers. Bonds issued by Venezuela and state oil firm PDVSA dropped sharply on last Thursday. German Marquez was appointed president of Corporacion Venezolana de Petroleo.

President Nicolas Maduro’s government added in a statement that it would analyze the International Chamber of Commerce (ICC). Rosneft Oil Co. PJSC, the Moscow-based company controlled by Vladimir Putin’s government. Two Caribbean islands affected by assets seizures, according to Thomson Reuters data.

An explosion at the 335,000-barrel-per-day (bpd) facility was heard just before midnight. India’s top oil producer Oil and Natural Gas Corp has an investment in a Venezuelan energy project. PDVSA unable to make more than $2 billion in payments coming due over the next week.

PDVSA affiliate that deals with joint ventures, including those with Chevron Corp., Repsol SA and Rosneft PJSC, according to a statement in the official gazette. The fire started when refinery operators were filling tanks to restart the catalytic cracker.

Nicolas Maduro, Venezuela’s president, speaks during a press conference at Miraflores Palace in Caracas, Venezuela, on Friday, Feb. 14, 2020. It received only $88 million of a $534 million dividend payment. Continued delays in making some $500 million coupon payments on several bonds.

PDVSA has not made payments to ONGC for six months and has previously turned to Russia’s state-owned Gazprombank. The shakeup at PDVSA comes as the U.S. tightens sanctions in an effort to cut off the Maduro regime’s income from oil. Conoco’s assets in Venezuela were expropriated in 2007 following a nationalization of the country’s oil industry.

The compound is used to thin the sludgy Venezuelan crude so it can move through pipelines to the coast. PDVSA exports have declined in recent months due to a stubborn tanker backlog around Venezuela’s main ports. The price was right, but parties couldn’t agree on the payment conditions, according to people familiar with the situation.

Its key export and main source of cash. PDVSA typically offers to pay after cargo delivery or makes the payment with oil products. International banks and suppliers have reduced or halted credit to PDVSA since global oil prices plummeted in 2014.

President says “The fireball was extinguished right away”.

PDVSA’s 2017N bond, which comes due on Tuesday, was down 5.125 points to a bid price of 89.250. The firm left the OPEC nation after it could not reach a deal to convert its projects into joint ventures controlled by PDVSA. PDVSA was planning to buy 3.5 million barrels of West Texas Intermediate.

A subsequent fire at one of the refinery’s flares took longer to control, and it was finally put down at 3 a.m. local time. Several investors on Thursday said they had begun receiving coupon payments on PDVSA’s 2037 bond. The U.S. earlier this month sanctioned a unit of Russian oil giant Rosneft, the biggest exporter of Venezuelan crude.

Boosting crude sales is essential to maintaining Maduro’s grip on power in the economically ravaged country. Venezuela’s embattled leader Nicolas Maduro, a long-time Putin ally, the shipments are critical. As PDVSA refineries are struggling to raise oil-processing due to breakdowns.

ONGC Videsh officials on Nov. 9-10 met with Venezuelan oil minister Eulogio Del Pino. The inconsistency of the payments and the unexplained delays have raised concerns. President’s regime has previously proposed giving majority shares. Legal actions against PDVSA by U.S. producer ConocoPhillips aimed to satisfy a $2 billion arbitration award.

It would forsake more than a decade of state monopoly. An inspection at the catalytic cracker produces finished fuels for Curacao’s domestic market. PDVSA President Nelson Martinez to discuss the issue of pending payments. Maduro installed Vice President Tareck El Aissami at the head of a commission focused on revamping PDVSA and boosting crude production.

The appointments didn’t include a new president of PDVSA, and El Aissami remains the top executive in charge of restructuring the company. The little that’s left about 1 million barrels a day. The Isla refinery used to process Venezuelan light oils, switched to imported supplies.

While Maduro vowed to increase production to 2 million barrels a day two years ago, the goal remains far from reach as the country enters its seventh year of economic decline. Russia pledges to help Venezuela to avoid outside military intervention. Two of Isla’s three crude distillation units are currently in operation.

Production fell to 733,000 barrels a day in January, a 36% drop from a year earlier, according to OPEC secondary sources. Payments will be made through existing offtaker channels or through new agreements. PDVSA could struggle to make upcoming payments of $985 million on its 2020 bond.

January output from PDVSA’s joint ventures with international oil firms accounted for 56% of total oil and gas production. Isla produced 118,200 bpd of refined products in November. The company alone produced 44%, according to PDVSA data seen by Bloomberg.

The ICC has no means of enforcing its decisions though Conoco considers. PDVSA by blending naphtha and extra heavy oils while its crude upgraders are out of service. Currently private refiners Reliance, Essar Oil are regular importers of Venezuelan oil.

PDVSA is moving its European office from Lisbon to Moscow. Antonio Perez as commerce and supply VP, replacing Marcos Rojas. Venezuela has often used oil to repay debt: it owes billions of dollars to both Russia and China. Oswaldo Perez as finance VP, replacing Fernando De Quintal.

PDVSA and Venezuela’s Information Ministry did not immediately respond to an email seeking comment. Conoco had sought up to $22 billion from PDVSA for broken contracts. The managers being replaced were either close to or recently appointed by Venezuela energy minister.

It specifically allow banks to carry out basic operations such as bond payments. PDVSA chairman Manuel Quevedo was granted overarching powers in April 2018 to restructure PDVSA. De Quintal worked at the Housing ministry under Quevedo.

Two Rosneft tankers, Serengeti and Abliani, will deliver a combined 1 million barrels. PDVSA has delayed a range of payments as Caracas uses its scant dollar supplies to make sovereign debt repayments. Rojas was appointed in mid-2019, to address the supply division after tighter U.S. sanctions cut off most buyers of Venezuelan crude.

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