Saturday, June 19

Maduro puts PDVSA up for sale to recover the dying oil industry


Caracas

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The regime of Nicolas Maduro has launched a low-key campaign without much noise to attract private Venezuelan and foreign capital in the opening of joint ventures valued at 77,000 million dollars with the moribund Petroleos de Venezuela (PDVSA) to evade sanctions.

This atypical confidential way of privatizing or putting up for sale the once-fifth largest corporation in the world without going through public tenders or legislative regulations has been presented under the classic Russian model secrecy since PDVSA came under control of Moscow in 2019.

Reuters reported that analyst Russ Dallen published a memorandum from the Maduro regime, called “Investment Opportunities in PDVSA», Which the company is distributing to investors and which suggests that practically everything is for sale or available for investment.

The document identifies 152 specific investment opportunities, including strategic partnerships, profit sharing, production agreements, and service contracts, valued at $ 77.6 billion.

Reuters notes that Venezuela needs $ 58 billion to return to production levels of 1998, before Chávez assumed power. PDVSA contributes 95% of its exports to the country’s revenues.

Production has fallen from 3.5 million barrels to less than 500,000 barrels a day, due to incompetence, incapacity and corruption. And the Minister of Petroleum, Tareck El Aissami, has promised to raise production to 1.5 million barrels per day this year without any chance of fulfilling it.

The Maduro regime forces investors to sign contracts under Russian-style confidentiality terms. The alliance with Russia was finalized in March 2019, when PDVSA’s subsidiary in Europe moved its offices from Lisbon to Moscow when the US blockade began against the operations of the Venezuelan oil company.

The new office domiciled in the central Arbat street in Moscow was registered on August 6, 2019 and is already operating, said the head of the office, Andrei Grichayev to the Russian press agency RIA. “We started work,” he added.

PDVSA’s international accounts have been handled in Moscow for two years. Hence its power of influence in Caracas over secrecy and confidentiality in privatization, just as the Russians did with their oil industry after the fall of the Soviet Union.

Delcy Rodríguez, on the Anti-Blockade Law

Delcy Rodríguez, the vice president of the Chavista regime, explains that the Anti-Blockade Law has to be discussed in the Chavista parliament: “it has confidentiality mechanisms for information that will allow the protection of those investments,” that is, it appears to legalize something that is illegal because none of the laws promulgated by the parliament not recognized internationally will be legal.

“Without a doubt, the anti-blockade law can allow North American companies to bring in more investments because they are here in Venezuela. These companies have not left and for something they have not done so and have had a license to work, “Delcy Rodríguez told the Petroguía digital portal.

«What is in law are new forms, different associative forms so that economic development and the expansion of investment in Venezuela both national and international, “he said. “The law has mechanisms of confidentiality in information, identity, object, development of the activity, that is, there is a system with a technological platform that will allow the protection of these investments,” he added at the end of last year.

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