(now VZLA sells out ecuador) Venezuela to allow oil joint ventures with CNOOC and Chevron

[naaman fletcher]

Ecuador has a $22 billion judgement against Chevron and is going around the world trying to collect. Do you think Chevron would really invest money in VZLA without an agreement that VZLA won't freeze the assets on ecuador's behalf?

http://business.financialpost.com/2013/05/17/venezuela-to-allow-oil-joint-ventures-with-cnooc-and-chevron/?__lsa=4468-f7a8

he state-owned producer reached agreements on terms of a US$2-billion credit from Chevron for the Petroboscan venture and a US$4-billion loan from China Development Bank for Sinovensa, said the official who was briefed on the negotiations. The transactions probably will be signed by the end of June, said the person, who isn’t authorized to speak publicly.

PDVSA is allowing the joint ventures to handle the funds directly for oil infrastructure rather than being channeled through the state company or the government, said the official. PDVSA is also working on arrangements with oil service providers to pay as much as US$2-billion in overdue payments and for new cash flow mechanisms.

Chevron spokesmen Kurt Glaubitz and James Craig didn’t respond to e-mails and telephone messages left Friday. An e-mail sent to CNPC after business hours wasn’t immediately answered.

Venezuela, which channels oil earnings into social programs and regional fuel subsidies, is depending on the ventures with foreign partners to tap more of the world’s largest oil reserves. Progress on the funding had been delayed by two presidential elections and the death of former President Hugo Chavez. Oil Minister Rafael Ramirez said May 15 that he would travel to China soon to sign the Sinovensa credit.

[Zorro]

1. I'm sure Correa is privately outraged

It will be interesting to hear Rafael comment publicly on the matter, if anyone in the press is unintimidated enough to pose the question.

The stock answer would be that it's a Venezuelan matter, but Correa is such a hothead that he might make some regrettable statements.

[joshcryer]

2. Hopefully western media will pick it up if Rafael comments.

When Rafael called for an emergency OPEC meeting a few months back it went way under the radar.

[Socialistlemur]

4. ChevronTexaco is closely allied with the Chavistas

As it turns out ChevronTexaco has several joint ventures with PDVSA. The Petroboscan operation is in Zulia, it produces very heavy oil which is shipped to refineries in the USA. Chevron owns 40 % of the shares in this company. Chevron also owns shares in two producing ventures in the Faja del Orinoco. As it turns out the Chevron manager based in Caracas also seems to have inked a deal to exploit the Vaca Muerta oil fields in Argentina. The announcement of these deals is seen by the private business intelligence experts as a sign that PDVSA lacks cash and is conceding terms to allow the fields to be drilled and produced by these corporations. The Russian company Rosneft also signed something recently. But the terms are not fully disclosed, and I suspect there will be additional negotiations. The is why they are reporting it won't be fully closed until June. The devil will be in the details. Most of this information you can find reading Chevrons website and Petroleum Intelligence Weekly.

[joshcryer]

3. Unsurprising. I keep saying the boligarchs are in charge.

Wilmer Ruperti might even have his hands in this one directly.