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ConocoPhillips reportedly open to exploring

deal for selling Venezuelan crude oil in US

US-VENEZUELA HOUSTON-BASED ConocoPhillips is open to Department that enables it to negotiate debt
exploring a deal to sell Venezuelan oil in the US, recovery with PdVSA but is not legally author-
sources familiar with the matter confirmed last ised to import Venezuelan oil.
week. When contacted by Dow Jones Newswires
According to the sources, the US company is for comment, ConocoPhillips declined to
looking for ways to recover the almost $10bn it respond directly, instead offering the following
is owed by Caracas. ConocoPhillips abandoned statement: “Regarding PdVSA recovery efforts,
its Venezuelan assets in 2007 when they were ConocoPhillips is committed to pursuing all
nationalised by the government of then-Presi- available legal avenues to protect our rights and
dent Hugo Chavez, who died in 2013 and was obtain a full and fair recovery of the awards in
then succeeded by Nicolas Maduro, his vice recognition of our fiduciary responsibility to our
president. shareholders.”
In a bid to retrieve these assets, ConocoPhil- Meanwhile, the US State Department has The deal
lips has entered into preliminary talks with Ven- refused to answer questions pertaining to Cono-
ezuela’s national oil company (NOC) PdVSA to coPhillips’ licence. Instead, it has stood by its pre- reportedly
explore options for transporting and selling Ven- vious claim that its policy is designed to support
ezuela oil in the US. A deal of this nature would democracy in Venezuela. proposed by
help ConocoPhillips recover lost income while Reports of ConocoPhillips’ interest of Ven-
also meeting growing US energy needs. ezuela are emerging as Chevron, another US ConocoPhillips
In 2019, the US imposed sanctions against company, works to act on its own permission to could help revive
Venezuela’s oil sector on the grounds of human take action in that country. Chevron received a
rights violations and election fraud, alleging that licence from the US government in November to oil trade between
Maduro had used illegal means to secure re-elec- restart oil production and exports from its exist-
tion. Washington therefore cut off nearly all of ing joint ventures in Venezuela in what marked the two countries.
PdVSA’s trade links with world oil, gas and fuels the beginning of the easing of economic sanc-
markets. Previously the US had been Venezue- tions against the South American country.
la’s main destination oil exports, and several US According to press reports, Chevron recently
Gulf Coast refineries had been built specifically delivered its first cargoes of Venezuelan crude
to process Venezuelan heavy crude. to the US market and is now working to expand
The deal reportedly proposed by Cono- sales of these volumes beyond its own refining
coPhillips could help revive oil trade between network. A source with knowledge of the situa-
the two countries. Technically, though, the US tion told Bloomberg said that the company had
company does not have permission to engage now sold its first load of Venezuelan oil – con-
in all activities related to such trade. The com- sisting of some 500,000 barrels of heavy Hamaca
pany has received a licence from the US Treasury grade – to Phillips 66, a US refinery operator.™

Week 03 19•January•2023 www. NEWSBASE .com P13