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

[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.