Page 8 - AsianOil Week 41

AsianOil SOUTHEAST ASIA AsianOil

US scrutinises Tipco’s PDVSA payments

POLICY THAILAND’S Tipco Asphalt has reportedly with PDVSA have benefited the government of
drawn some unwelcome attention from US fed- Nicolas Maduro, which Washington views as
eral authorities in light of reports on its financial illegitimate.
arrangements with Venezuela’s national oil com- According to David Weber, a former investi-
pany (NOC) PDVSA. gator at the US Treasury Department’s Securities
According to the Associated Press, which and Exchange Commission (SEC), Tipco may
has been investigating evidence of the payments not survive this scrutiny unscathed. Since a num-
provided by a former PDVSA consultant, US ber of the transactions revealed by AP’s source
authorities are looking into reports that Tipco appear to have involved US financial institutions
made payments on behalf of the Venezuelan or entities, the Thai firm may become the target
NOC in exchange for discounts on crude oil of a money-laundering or criminal fraud inves-
supplies. The news agency said last week that tigation, said Weber, now a professor of forensic
US President Donald Trump’s administration accounting at Maryland’s Salisbury University.
was scrutinising the transactions, apparently According to the news agency, Trump
with the aim of determining whether they make administration officials began urging Tipco to
the Thai company liable to penalties under the cut ties with PDVSA last December and renewed
current sanctions regime, which aims to restrict the pressure in August. The company does not
investment in Venezuela’s oil sector. appear to have informed its shareholders of these
After information on the payments began contacts prior to September 11, despite stock
coming to light, Tipco pointed out that its pay- exchange rules that require it to disclose infor-
ments to third parties on PDVSA’S behalf were mation that might affect its investment decisions
a standard feature of its contracts for Venezue- or have a significant effect on stock prices.
lan oil. It also asserted in a Thai stock exchange It is not clear whether Tipco fully abided
filing dated September 11 that the transactions by those rules. After the September 11 filing,
were fully legal, since they did not fall under the its shares dropped by 40% and its managers
umbrella of sanctions applying to US companies. revealed that they were suspending operations at
In the same filing, Tipco also announced the company’s asphalt plant in Malaysia. PdVSA
plans to wind down its purchases of Venezue- supplies much of the feedstock used at that plant,
lan crude. Nevertheless, US officials are report- which accounts for around half of the company’s
edly looking into the possibility that Tipco’s ties production.™

EAST ASIA

PipeChina reveals LNG regasification

tariffs, spare capacity

PROJECTS & STATE-OWNED China Oil and Gas Pipeline The deeds handed over control of oil and
COMPANIES Network (PipeChina) has reportedly revealed gas pipelines, storage facilities and personnel
both regasification tariffs and November-De- from PetroChina, Sinopec and China National
cember spare capacity for six of its liquefied nat- Offshore Oil Corp. (CNOOC), which now own
ural gas (LNG) terminals. 29.9%, 14% and 2.9% of the midstream operator
The utility intends to charge CNY0.18-0.312 respectively. The Big Three agreed in July to sell
($0.027-0.046) per cubic metre for regasification their midstream assets, with the facilities valued
services at the Beihai, Diefu, Tianjin, Fangcheng- at the time at CNY391.4bn ($58.17bn).
gang, Yuedong and Hainan terminals, Argus Other PipeChina shareholders include China
Media reported on October 15. Of the eight ter- Chengtong Holdings, China Reform Holdings,
minals PipeChina currently owns, two facilities National Council for Social Security Fund,
remain under construction. PipeChina is also China Insurance Investment Fund, CIC Inter-
understood to be offering 1.09mn tonnes of spare national and Silk Road Fund.
receiving capacity in November and 1.05mn Argus reported that PetroChina affiliate Kun-
tonnes in December across the six terminals. lun Energy was expected to transfer two LNG
The news follows PipeChina’s launch on terminals, one of which is operational and the
October 1, following the company’s signing of other still under construction, to PipeChina. It
asset transfer agreements with its nine share- is not clear when the transfer will be finalised,
holders on September 30. however.

P8 www. NEWSBASE .com Week 41 15•October•2020