Page 8 - LatAmOil Week 10 2022

LatAmOil VENEZUEL A LatAmOil

It also noted that world fuel and energy demand
was on the rise, owing to the loosening of
restrictions related to the coronavirus (COVID-
19) pandemic.
The price reported by the Oil Ministry is
significantly lower than the market prices for
benchmark grades such as Brent and WTI, both
of which were trading above the level of $110 per
barrel as of March 4.
This gap is not surprising, though, given that
Venezuelan crude is heavier, higher in sulphur
and more difficult to refine than either WTI or
Brent.
Even so, several Venezuelan analysts have PdVSA often sells its extra-heavy crude at a discount (Photo: PdVSA)
told Argus Media that the ministry might be
misrepresenting price levels. Caracas often sells might be cutting prices by nearly 25% for this
crude at heavy discounts in order to compen- reason. “They are getting around $60 a bar-
sate buyers for the extra risks they incur when rel after a $20 discount,” Argus quoted him as
engaging in transactions that may be subject saying on March 7. “That discount is aimed at
to US sanctions and for the trouble they have attracting clients.”
to take when handling extra-heavy crude, they As of press time, neither PdVSA nor the min-
explained. istry had commented on the issue of whether
One of those analysts, Rafael Quiroz, said discounts were being applied to the prices listed
that Venezuela’s national oil company PdVSA in the filing published by Ultimas Noticias. ™

GUYANA
Guyana’s attorney general defends

government’s support for oil development

GUYANESE Attorney General Anil Nandall
has spoken strongly in favour of the govern-
ment’s economic agenda in response to criticism
from several non-governmental organisations
(NGOs) that have raised objections to George-
town’s promotion of upstream oil development.
Nandall mounted a defence of the Guyanese
government’s stance after several non-gov-
ernmental organisations (NGOs) signed a
statement accusing Georgetown of lacking
accountability in the oil sector and pushing to
develop hydrocarbon resources too quickly.
In an interview with OilNOW.gy last week, he
responded to what the NGOs have described
as the “stripping” of the Public Oversight &
Accountability Committee (POAC) from the
Natural Resource Fund (NRF) Act, the decrease
in the influence of the Environmental Protection
Agency (EPA) over the government’s actions
and the scheduled appointment of a high-rank-
ing party member of the current government to
head the Guyana Extractive Industries Trans- Guyana favours development of offshore oilfields (Image: Eco Atlantic)
parency Initiative (GYEITI).
More specifically, Nandall stated that the Guyanese citizens. He also mentioned that the
Guyanese government remained fully support- government remained fully committed to its
ive of oil and gas exploration and production climate goals and continued to pursue its Low
activities as a key source of revenue capable Carbon Development Strategy, which is aimed
of raising the national standard of living for at facilitating environmental protection.

P8 www. NEWSBASE .com Week 10 10•March•2022