Page 15 - LatAmOil Week 38

LatAmOil VENEZUEL A LatAmOil

Chief prosecutor Saab outlined charges against a US citizen (Photo: VTV)

Crystallex wants to push forward with the sale in General. That letter states that Crystallex can-
order to enforce a $1.4bn judgment against the not force the sale of PDVH shares unless it first
Venezuelan government. The Canadian com- obtains a licence from the US Office of Foreign
pany secured that judgment, which called for Asset Control (OFAC), they said.
Caracas to pay $1.2bn as compensation for the They also asked the court to wait before
seized property and $200mn in interest, from a authorising actions that had the potential to
World Bank arbitration tribunal in 2016. It had affect US interests.
filed suit to protest Caracas’ nationalisation of its Citgo’s fate is inextricably connected to dis-
gold mine in Bolívar State. in 2008 putes involving the legitimacy of Venezuela’s
Stark noted during his audience last week government. The South American country is
that Crystallex’s request might conflict with US nominally ruled by President Nicolas Maduro,
government policy. He was referring to a brief but Venezuelan opposition leader Juan Guaido
filed earlier this year by the US Justice Depart- has asserted that Maduro used fraudulent
ment, which argued that the sale of Citgo’s par- means to secure re-election in late 2018. The US
ent company might pose threats to US interests government supports Guaido, who has served
and national security. as interim president since early 2019, and has
Crystallex responded to the judge’s com- imposed sanctions on PdVSA in the hope of
ments by asserting that the term “national forcing Maduro out of power.
security” was being used too broadly. So far, In turn, Guaido and his allies have nominal
company representatives said, US officials have control over Citgo and have nominated the com-
not yet outlined any scenarios under which a pany’s board of directors over the objections of
sale might harm US national security. Maduro’s supporters in the National Assembly.
Stark, in turn, sought input from the US The opposition is reluctant to authorise a stock
attorneys, who replied that Elliott Abrams, US sale, since the US-based company is one of the
President Donald Trump’s special envoy for few sources of revenue for Venezuela. (Sanctions
Venezuela, had explained the matter in a letter have served to cut PdVSA off from most sources
to the Justice Department and to the Attorney of income.) ™

ARGENTINA
Argentina’s gas output down 12.2% in July

PRODUCTION of natural gas in Argentina fell central province of Neuquén, according to the
by 12.2% year on year in July to 126.8mn cubic IAE data.
metres per day, according to the latest statistics. Neuquén, home to the Vaca Muerta shale
Output levels were flat compared to the previous formation and the largest gas-producing prov-
month of June, the new data published by the ince in Argentina, registered production falling
IAE (Argentine Energy Institute) showed. to 2.79bn cubic feet (79.01 mcm) per day in July,
Gas production was down in all basins in down from 3.22 bcf (91.19 mcm) per day in the
the Latin American nation in July, including the same month of last year.

Week 38 24•September•2020 www. NEWSBASE .com P15