Economy

Conoco takes Venezuela's Caribbean oil facilities further crippling Venezuela oil exports

Conoco takes Venezuela's Caribbean oil facilities further crippling Venezuela oil exports”

USA oil giant ConocoPhillips is pressing for control of Venezuela's key offshore operations in the Caribbean, seeking to recoup $2 billion from a decade-old dispute with the nation struggling to feed its people, a source confirmed Monday.

Venezuela's oil production has slumped to the lowest in seven decades, and many analysts expect it to fall further as the cash-strapped country can not afford to invest in field and equipment maintenance.

The move against PDVSA is an attempt to enforce a $2 billion arbitration award stemming from the nationalisation of ConocoPhillips' projects in Venezuela, the report said citing sources familiar with the case. It arrived in Curacao's Bullenbay terminal on Sunday, two days after at least two Caribbean courts ordered the retention of PDVSA's inventories and facilities in Bonaire, Curacao, Aruba and St. Eustatius by request of the USA oil company.

Conoco's writs of attachments are a legal manoeuvre to temporarily retain assets - from stored oil, to cargoes and facilities - and could give the USA company the ability to sell them later. The three play key roles in processing, storing and blending PDVSA's oil for export.

The Caribbean terminals affected by the court orders a year ago were responsible for shipping about 400,000 bpd of crude and refined products, or 24 percent of PDVSA's total exports, according to the company's internal data.

In the first quarter, PDVSA exported 1.19 million bpd of crude from its terminals in Venezuela and the Caribbean, according to Thomson Reuters trade flows data.

"We will pursue all available legal avenues to obtain full and fair compensation for our expropriated investments in Venezuela", ConocoPhillips said in a statement.

OPEC-member Venezuela is nearly completely dependent upon crude exports, which slid 29 percent to 1.19 million bpd in the first quarter, according to Thomson Reuters Trade Flows data.

Two dozen oil tankers were waiting on Monday to load crude at Jose for exports, according to the Reuters data, double the normal amount of tankers. Its refineries ran at just 31 per cent of capacity from January through March.

On Bonaire, a portion of the fuel stored at the terminal plans to be released for local use at a power station under a deal struck late on Sunday between acting Governor Curvin George, PDVSA's Bonaire Petroleum Co and Conoco, according to Dutch officials.

PDVSA leases facilities on two of the islands, so ConocoPhillips cannot take them over even with a court order, but it could seize Venezuela's oil stored in them and any state-owned ships that dock there, said Russ Dallen, a Venezuela expert.

Over the weekend, the oil tankers that left Venezuela's shores turned around before reaching the Caribbean islands.

To compensate for the loss of Caribbean operations, PDVSA could widen shipping from its main crude port, Jose, and smaller terminals along its Western Coast.



Like this

loading...
loading...

Latest


10 May 2018
Monster Hunter Generations Ultimate Conquers Switch August 28
And if you played Monster Hunter Generations , you'll be able to carry your progress over to the Nintendo Switch version. Players can take it locally or hop online to hunt alongside friends and take down the biggest, baddest monsters around.

10 May 2018
Track laying commences on Lagos-Ibadan fast rail
Finally, the laying of tracks for the ongoing Lagos-Ibadan standard gauge project has commenced, it was observed today. He said: "When you spend less than an hour from Apapa to Ibadan, it would be an advantage to the users".

10 May 2018
Reliance Jio introduces new Rs 199 postpaid plan, global roaming packs
Also, there's no Security Deposit required to start worldwide services and the calls start at Rs 50 per minute as mentioned above. That said, Jio has always been a prepaid service provider, and the worldwide roaming service in the past was messed up one.

10 May 2018
Showers Thursday morning expected north of Oklahoma City area
There will likely be breaks of sunshine across much of the area, allowing highs to make the 60s to low 70s. Otherwise highs will reach the mid 50s south to the low 60s north.

10 May 2018
The next Android TV device is here, but it's only for developers
As the name implies, Smart Compose uses predictive text analysis to identify what you plan to type and will autofill your message. It has been challenging Google more frequently by launching that services duplicate what Google already offers on Android.

10 May 2018
Battlefield V Reveal Date Discovered in Hidden Battlefield 1 Easter Egg
It leads to a webpage which contains the date 23rd May 2018 and a Battlefield hashtag. Each poster has a button hidden behind it which presses on a specific letter.

10 May 2018
What Can We Expect After Xcerra (NASDAQ:XCRA)'s Downgrade By DA Davidson?
Price targets are useful, most investors find more value in an analyst's conviction level or in the ratio of upside to downside. The stock now shows its YTD (Year to Date) performance of 35.24 percent, whereas its Weekly performance stands at 9.97%.

10 May 2018
Uber, NASA sign Space Act Agreement for flying taxi service
Khosrowshahi said people should expect meal delivery in five to 30 minutes, depending on whether it comes from a drone or a human. A video demonstrating the firm's vision of a flying taxi network reveals what appears much like its current on the ground model.

10 May 2018
ESPN Names MNF Broadcast Team
The offer too good to turn down yanked Witten from his 16th season with the Dallas Cowboys in the middle of draft weekend. ESPN has made it official: " Monday Night Football " will have an nearly entirely new broadcast team for the 2018 season.

10 May 2018
Canaan, China's second largest mining manufcaturer plans $1 Billion Hong Kong IPO
The second leading Bitcoin mining hardware vendor in China , Canaan Creative is preparing for an Initial Public Offering (IPO). The Hanzou based company was founded in 2013 to design and sell the high-performance circuits specific to mining Bitcoin.