Page 10 - LatAmOil Week 15 2020

LatAmOil VENEZUELA LatAmOil
US government extends Citgo’s protection against PdVSA creditors
THE US Treasury department has renewed a measure designed to prevent creditors of Ven- ezuela’s national oil company (NOC) PdVSA from laying claim to Citgo, the US-based refiner that is PdVSA’s most valuable foreign asset.
The department announced the renewal on April 10, saying that it was extending the term of the waiver covering Citgo for another three months. In a statement, it noted that the meas- ure had been due to expire on April 22 but would now remain in place until July 22.
Washington has extended the waiver to Citgo in line with its wider efforts to promote Juan Guaido, Venezuela’s opposition leader and interim president, as a legitimate claimant to political power. Guaido appointed his allies to Citgo’s board of directors last year, thereby gain- ing control over the company – much to the dis- may of PdVSA, which is still under the control of Venezuelan President Nicolas Maduro.
The US government favours Guaido, who has alleged that Maduro used fraudulent and corrupt means to secure his re-election in late 2018. Washington imposed additional sanctions on Caracas in early 2019, specifically targeting PdVSA in a bid to discourage investment in the Venezuelan oil sector.
To date, though, it has also exempted Citgo from those sanctions. It has done so because PdVSA designated a majority stake in Citgo’s parent company, which is one of its subsidiaries, as collateral for a securities issue that matures
this year. Since the NOC is now in default, its bondholders (which include the Russian gov- ernment) technically have the right to seize the collateral. But the US government would prefer to see the refiner remain in Guaido’s hands.
For its part, the Maduro regime has criticised the waiver, calling it part of a plot by Washington to steal Citgo from its rightful owner.
Chevron’s waiver
In related news, the US government has sig- nalled once again that it is not likely to renew Chevron’s exemption from the Venezuelan sanctions regime.
Washington has given the US major permis- sion to continue operating in the South Amer- ican country over the last year, but its special waiver is due to expire on April 22. And on April 16, Deputy Secretary of State Carrie Filipetti said that the government was rethinking its earlier stance, citing concerns about whether exemp- tions might be “helping the Maduro regime even if [they are] not providing direct income.”
Filipetti did not say explicitly what, if any- thing, Washington intended to do about Chev- ron’s operations in Venezuela.
For its part, the company indicated that it hoped to retain a foothold in the South Amer- ican state. “We remain hopeful that General Licence 8E [the waiver] will be renewed to con- tinue our long constructive history in the coun- try,” it stated.™
Venezuelan private firms eye looser restrictions on gasoline imports, sales
REPRESENTATIVES of Venezuela’s private fuel supply companies are urging the govern- ment to loosen restrictions on the import and sale of gasoline.
Members of the Oil Chamber, which brings together Venezuelan contractors and service companies, have proposed that Caracas allow private firms to import gasoline. They have pointed out that the country is on the verge of experiencing the worst motor fuel shortage in more than 10 years, according to Reuters.
“Fuel is indispensable for the health and food
sectors, and so we must temporarily deregulate the internal market and allow the importation of fuels from various external private sources,” the Zulia chapter of the Oil Chamber said in a statement published on Twitter last week.
The group’s members recently began talks
with the national oil company (NOC) PdVSA,
the news agency added, citing three people
with knowledge of the talks. The sources also
noted that representatives of President Nicolas Maduro’s administration had been present at the discussions. 
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w w w . N E W S B A S E . c o m Week 15 16•April•2020