Page 8 - LatAmOil Week 35 2021

LatAmOil VENEZUEL A LatAmOil

Gas-processing facility at Copa Macoya field (Photo: Inpex)
Under Venezuelan law, outside investors can Assuming that the news agency’s report
only hold non-operating minority stakes in oil is accurate, this is not the first time Inpex has
projects, it explained. scaled back its operations in Venezuela. The
Inpex declined to comment on the matter or Tokyo-based company is a member of a consor-
confirm the sources’ statements when contacted tium of Japanese firms that decided in June of
by Bloomberg. Likewise, PdVSA and Sucre have this year to shed a 5% stake in Petroindepend-
kept mum on the subject. ence, a joint venture formed with PdVSA. ™

Venezuela reportedly struck oil-

for-food agreement last year

EVIDENCE has emerged that cash-strapped
Venezuela struck a deal with a local company to
swap crude for food last year, despite the US gov-
ernment’s effort to restrict trade with the Latin
American country.
According to a Reuters report, the deal
provided for Venezuela’s national oil company
(NOC) PdVSA to delivering more than 6mn
barrels of crude worth almost $260mn to a local
firm known as Supraquimic. The parties began
executing the transaction in December 2020,
but their plans collapsed when PdVSA accused
two executives connected to Supraquimic of
embezzling the proceeds, the news agency said,
citing criminal charges filed in March by Vene- US sanctions target PdVSA, as well as the Venezuelan government (Photo: EFE)
zuelan prosecutors.
Little is known about Supraquimic. Reuters economic decline in recent years.
noted, though, that the Venezuela firm was one However, a spokesman for the US State
of several obscure companies that have emerged Department told Reuters last week that the
as buyers of Venezuelan crude oil since the oil-for-food swap took advantage of those
imposition of tighter economic sanctions tar- exceptions.
geting PdVSA and the oil sector by the admin- Venezuelan President Nicolas Maduro and
istration of former President Donald Trump in his supporters have “attempted to exploit US
early 2019. policy in support of humanitarian related trans-
The US sanctions regime does leave some actions by disguising their attempts to squeeze
room for the delivery of humanitarian relief to profit from Venezuelan resources as oil-for-food
Venezuela, which has experienced a precipitous schemes,” the spokesman told Reuters.

P8 www. NEWSBASE .com Week 35 02•September•2021