All of the above was,and continues to be, ignored by Swedish and American authorities. These discoveries will have a profound impact on the country's crude export mix, as the Monagas prospects, which currently produce 80,000 barrels per day of light oil, are expected to reach plateau production--the stable production period before the field declines--of 500,000 barrels per day in 1994. Under this narrower interpretation, it is irrelevant whether the National Assembly approved the 2020 Bonds because all of the corporate formalities needed to validly issue a securityapproval by the board of directors, approval by the shareholders, etc.appear to have been followed. His partner Betancourt, is part of several ongoing criminal probes. El ataque a la Asamblea Nacional en Venezuela, tensiones diplomticas con Corea del Norte, y la reunin del G20 en Hamburgo temas de discusin en este programa de Club de Prensa. But the United States Department of State has concluded that Maduro is not Venezuelas legitimate political leader. N.Y. General Obligations Law 5-1401 states that a New York choice-of-law clause should be enforced whenever it appears in a business contract worth more than $250,000 in the aggregate. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. The attempt is yet another effort paid by corrupt thugs to eraseinformation about their criminal activities. Without Assembly approval, the 2020 Notes could even be deemed as legally non-existent under Venezuelan law and, as such, they could not have any effect inside or outside Venezuela, because the choice of law clause electing New York law as applicable lacked the Assembly approval for it to begin its effectiveness in the first place. The lack of any such cases cut against giving the term a broad interpretation. Concurrent with this action, OFAC is issuing a general license that authorizes certain transactions and activities that are ordinarily incident and necessary to the wind down of transactions involving Rosneft Trading S.A. As a result of todays action, all property and interests in property of Rosneft Trading S.A. and Didier Casimiro that are in the United States or in the possession or control of U.S. persons, and of any entities that are owned, directly or indirectly, 50 percent or more by the designated individual and entity, are blocked and must be reported to OFAC. PDVSA operates under broad policy guidelines issued by the government. The discussion highlighted the Ministers position on the best way for the international community to handle the crisis in Venezuela and how to confront infrastructural-based corruption throughout Latin America. Finally, the district court noted the virtual absence of any New York case law supporting the broad interpretation of the validity favored by the plaintiffs. Heifred Jhoselin Segovia Marrero, vice president of finance. Subsidiary Propernyn PDVSA bought 50% of CITGO from the Southland Corporation. Nynas got rid of information of its Board of Directors altogether from its website. The application of choice-of-law rules can turn a winning case into a losing case (and vice versa). Venezuela, unlike the Middle East or Iran, devised a concessionary system whereby most oil companies could operate, regardless of nationality, and production costs were much lower than in the United States, which accounted for 70% of total world oil production at the time. Infodio.comhas no issues with other websites / journalists using / posting information published here, so long as the source is properly cited. The plaintiffs appealed. Guaids newly appointed then directorsreconstituted the boards of directors of the nominal defendants in this action three Delaware entities The Republic shall be represented by the Peoples Power Minister of Petroleum and other ministers that the President of the Bolivarian Republic of Venezuela may appoint. The Maduro governments inconsistent macroeconomic policies resulted in a significant GDP contraction and hyperinflation before any significant U.S. sanctions were in place, so the latest sanctions (including those on PDVSA) just complicate an already difficult outlook for Venezuelan debt holders. Our Standards: The Thomson Reuters Trust Principles. The exchange was also approved by the companys sole shareholder and by the boards of the PDVSAs subsidiaries with oversight and control of CITGO. PDVSA continues to invest in its production facilities with the intention of increasing production in a few years' time. There is lower default risk in Citgo than in PDVSA, but the difference is not enough to justify taking a yield of 10% when PDVSA's October 2015s offer an annualised yield of around 24%. This system refers to an agreement where by concurrent owners bear all expenses equally. The National Assembly of Venezuela refused to support the exchange. 9-13/09/2014. The changes were first made by an ad-hoc board of directors for PDVSA, and later authorized by the National Assembly. TheLatin America Advisor features Q&A with leaders in politics, economics, and finance every business day. The products sold are petrol, aviation fuel, diesel fuel, lubricants, kerosene, and asphalt, with petrol accounting for almost half of total consumption. One of PDVSA's most important international marketing strategies has been its joint venture participation in foreign manufacturing and marketing companies which has accelerated significantly since 1986, when oil prices fell below $10 per barrel and it was difficult to place oil. In his last presidential address, Caldera urged the new incumbent, Carlos Andrés Prez of Accin Democrtica, to nationalize the industry. . Oil has been known and used in Venezuela since seepages were found on the shores of Lake Maracaibo during the colonial period, which ended in 1910. WebGiven the current political situation in Venezuela, the PDV Holding board was elected by the ad hoc Board of Directors of PDVSA which was appointed by, and now accountable to, The entitys board was appointed by Nicols Maduro, who claims to be the president of Venezuela. The Free Dictionary CVP was to operate in competition with foreign concessionaires in the country and was to be the official instrument of the country's petroleum policy. PDVSA does not enjoy any tax privilege except for the tax-free receipt of 10% of the net income from its subsidiaries' export sales which, for accounting and tax purposes, is viewed as a cost incurred by the subsidiaries. Since its founding on 1 January 1976 with the nationalization of the Venezuelan oil industry, PDVSA has dominated the oil industry of Venezuela, the world's fifth largest oil exporter. June 1 (Reuters) - Venezuela's political opposition on Tuesday approved the replacement of members of the boards overseeing Citgo Petroleum Corp as factions in the movement led by Juan Guaido try to gain greater influence over Houston-based oil refiner. Choice-of-law rules can be complex, confusing, and difficult to apply. The new PDVSA includes: Pedro Rafael Tellechea Ruz, president. Against this backdrop, and considering that the U.S. government could issue additional sanctions targeting Venezuela in the coming days, it is certainly growing riskier to hold Venezuelan debt., Jose Pineda, senior consultant at DevTech Systems and adjunct professor at Sauder University of British Columbia:First, Juan Guaid did not proclaim himself president. PDVSA's proved reserves rose from 18.2 billion barrels in 1976 to 58.35 billion barrels in 1989. It has activities That sum is just part of $21.2 billion that PDVSA holds in commercial accounts receivables - including $3.6 billion that are potentially unrecoverable - Reuters disclosed last week. Web. The publication is available to members of the Dialogues Corporate Programand others by subscription. It is also worth repeating that Francisco Convit, a GPB associate, is a Justice Department fugitive. Note added28/06/2021: impostors are using this site's former editor's full name, and a fake email addresses (alek.boyd.arregui@gmail.com)to send copyright infringement claims / take down requests to web hosting companies (exhibit Hostgator). On the one hand, the term may be interpreted broadly to refer to both the corporate law of Venezuela and to Venezuelan law more broadly. Libertador con calle El Empalme Complejo MinPetrleo - PDVSA, La Campia, Caracas - Venezuela. Nicolas Maduro sold Nynas to mistery buyer? This appeal involves a nonjusticiable political question: who has the authority to litigate in the name of the Venezuelan state oil company, Petrleos de Venezuela, S.A. 4. The United States has made it clear that we will consider lifting sanctions for those who take concrete, meaningful, and verifiable actions to support democratic order in Venezuela. In 1990 Propernyn became the sole owner of CITGO. Profits were also used to assist the presidency, with funds directed towards allies of the Venezuelan government.With PDVSA focusing on political projects instead of oil production, mechanical and technical statuses deteriorated while employee expertise was removed following thousands of politically-motivated firings. HECTOR ANDRS OBREGN PEREZVICE PRESIDENTEXECUTIVE, LUIS ENRIQUE MOLINA DUQUE VICE PRESIDENT OF EXPLORATION & PRODUCTION, LEYLI BEATRIZ FERRER AVENDAOVICE PRESIDENT OFPLANNING AND ENGINEERING, HEIFRED JHOSELIN SEGOVIA MARRERO VICE PRESIDENT OF FINANCE, GNESIS SABRINA RON SOLANOVICE PRESIDENT OF INTERNATIONAL COMMERCE AND SUPPLY, JUAN CARLOS DAZ SOCORROVICE PRESIDENT OF COMMERCE AND SUPPLY, GUSTAVO ADOLFO BOADAS DAZ VICE PRESIDENTOF REFINING, JUAN VICENTE SANTANA MIGLIACIN VICE PRESIDENT OF GAS, RONNY RAFAEL ROMERO RODRGUEZVICE PRESIDENT OF INTERNATIONAL AFFAIRS, YURBIS GMEZ EXTERNAL DIRECTOR RICARDO LEN EXTERNAL DIRECTOR SIMN ZERPA DELGADO EXTERNAL DIRECTOR WILLS RANGEL EXTERNAL DIRECTOR RICARDO MENNDEZ PRIETO EXTERNAL DIRECTOR. WebThe new members of the board of directors are: 1. It is understood to encompass the many reasons why a contract may not be enforceable as a matter of contract law. Petrleos de Venezuela S.A. (PDVSA) is wholly owned by the Venezuelan state and is the holding company for the national petroleum industry. Autol - Calahorra Motorway (LR-282) Km 7,Calahorra (La Rioja) - info@torremaciel.com - +34 941163021 - +34 941163493. It would be interesting to know what was the rationale of the NY lawmaker when it decided that this multilateral choice of law rule should exclude freedom of choice. On March 21, 2023, by decree No. The opposition has moved to appoint a new board of directors for Citgo. Is it growing more or less risky right now to hold Venezuelan debt? It is evident that PDVSA is no longer involved in any meaningful way with Nynas, neither at the executive level nor as a crude provider. See here for a complete list of exchanges and delays. PDVSA operates under broad All rights reserved. As President of PDV Holding, Inc., Samuel Wilhelm is an experienced global oil and gas business Exeario Boscn. It owns 12 refineries with an overall processing capacity of 1.75 million barrels per day, of which 945,000 million barrels per day are processed in Venezuela and the rest in the United States, Europe, and the Dutch Antilles. For tax purposes, PDVSA is treated by the Venezuelan government like any other business entity. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. As with previous OFAC designations, U.S. sanctions need not be permanent and are intended to change behavior. While Maduros stepping down could expedite the investors path to recovery, it is uncertain if a new government in Venezuela would have debt servicing as a priority, especially if it is in need of massive amounts of capital. As a result, he will struggle to pay the October 2020 PDVSA bond, increasing the risk of default on the Citgo-collateralized loan. After the district court dismissed the action for lack of standing and the Eleventh Circuit affirmed, an entity purporting to speak for Petrleos de Venezuela sought to substitute itself as the real party in interest. Pequiven has two petrochemical complexes: Morn in Carabobo state and El Tablazo in Zulia state. WebPDVSA is listed in the World's largest and most authoritative dictionary database of abbreviations and acronyms PDVSA - What does PDVSA stand for? Since 1978 it has been responsible for the petrochemical sector, and in 1985 it was entrusted with the development of the country's coal resources located in western Venezuela. 2703, published in the Extraordinary Official Gazette of the Bolivarian Republic of Venezuela No.6284. A recent decision in the U.S. Court of Appeals for the Second Circuit, Petrleos de Venezuela S.A. v. MUFG Union Bank, N.A., is a case in point. We're doing our best to make sure our content is useful, accurate and safe.If by any chance you spot an inappropriate comment while navigating through our website please use this form to let us know, and we'll take care of it shortly. Initial exports started at 500,000 tons but are expected to reach 6.5 million tons by 1995. In this post, I first review the facts of the case. Registered in the Canton of Geneva, Switzerland as a trading company in January 2011, Rosneft Trading S.A. was created to assist Rosneft Oil Company in carrying out its foreign projects. Interesting topic. From a European perspective, this case would seem to be, at first sight, about the interpretation of the scope of an overriding mandatory provision, which should obviously trump any choice of law clause concluded by the parties. Horacio Medina, former executive of PDVSA 2. This was the result of increased exploration activity and the addition of 26 billion barrels from the Orinoco oil belt. The underlying action, brought by a litigation trust on behalf of Petrleos de Venezuela, alleged conspiracy, antitrust, cybercrime, and fraud claims against various individuals and entities. WebThe board of directors reports to an assembly constituted by the minister of energy and mines, who presides over it, and to those members of the Executive Cabinet designated by the president of the republic. The fate of the 2020 Notesand the billions of dollars those notes representis now in the hands of the New York Court of Appeals. The court began its analysis by observing that the strongest argument in support of a broad interpretation is based on plain language. The new board of directors filed a lawsuit in the Southern District of New York against the trustee and the collateral agent for the 2020 Notes. the validity of a security.. It is PDVSA that has failed to honor our award by ignoring the judgment of the ICC tribunal and other local court orders. After nationalization, PDVSA began to diversify its exports, seeking to increase its supply of white products--gasoline and jet fuel--which are traditionally more in demand and afford a higher profit margin. The National Assembly took the position that these notes were contracts of public interest which required legislative approval pursuant to Article 150 of the Venezuelan Constitution. Current gas production is between 3.6 million and 3.8 million cubic feet of gas per day of which one-third is sold locally, about one-third reinjected into the reservoirs, 21% used by the oil industry and 5% flared. Brussels; Chicago; Denver; Doha; Indianapolis; London; Los Angeles; New York WebThe Chancery Court denied the Maduro directors claims and ruled that under the political question doctrine and act of state doctrine, U.S. courts must accept as binding the U.S. Presidents recognition of the Guaid government and assume the validity of the Guaid governments appointments to the PDVSA Board. Michelle DiGruttolo, senior managing director at Ankura, and Jay Squiers, managing director in the firms energy restructuring office:The latest sanctions will ensure that trading on both Venezuelan government-issued bonds and PDVSA bonds remains at a virtual standstill. It has activities in exploration, production, refining and exporting oil as well as exploration and production of natural gas. As a result, in 1971 the Hydrocarbons Reversion Law was enacted, aimed at ensuring the continuity and efficiency of the country's oil activities after the concessions expired in 1983. Then congress Diversity, Equity, Inclusion, and Accessibility, Alcohol and Tobacco Tax and Trade Bureau (TTB), Financial Crimes Enforcement Network (FinCEN), Office of the Comptroller of the Currency (OCC), Treasury Inspector General for Tax Administration (TIGTA), Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Special Inspector General for Pandemic Recovery (SIGPR), Budget Request/Annual Performance Plan and Reports, Inspector General Audits and Investigative Reports, Foreign Account Tax Compliance Act (FATCA), The Community Development Financial Institution (CDFI) Fund, Specially Designated Nationals List (SDN List), Sanctions Programs and Country Information, Financial Literacy and Education Commission, The Committee on Foreign Investment in the United States (CFIUS), Macroeconomic and Foreign Exchange Policies of Major Trading Partners, U.S.-China Comprehensive Strategic Economic Dialogue (CED), Small and Disadvantaged Business Utilization, Daily Treasury Par Real Yield Curve Rates, Debt Management Overview and Quarterly Refunding Process, U.S International Portfolio Investment Statistics, Report Fraud Related to Government Contracts, Cashing Savings Bonds in Disaster-Declared Areas, Community Development Financial Institution (CDFI) Fund, Electronic Federal BenefitPayments - GoDirect, General Property, Vehicles, Vessels & Aircraft. In my view, the 2020 Notes were invalid ab-initio due to the lack of Assembly approval as required by Article 150, irrespective of corporate law compliance. Copyright 2018, INFODIO. Exclusive news, data and analytics for financial market professionals, Reporting by Luc Cohen and Marianna Parraga Websovereign. Nynasgot rid of information of its Board of Directors altogether from its website. New PDVSA Board of Directors installed and sworn in PDVSA.COM / Tuesday, 10 January 2023 COMPARTIR: ACCESOS RPIDOS Subsidiaries PDVSA Radio Revista We see them around but we don't know what goes on behind the scenes. WebPDVSA President Board and Advisor Roles Number of Current Board & Advisor Roles 2 Number of Past Board & Advisor Roles 1 Ronald Pantin holds 2 board and advisor roles as Executive Director at Frontera Energy Corporation and Member of Board of Directors at CGX Energy. . Javascript is not enabled on your browser. The Inter-American Dialogue engages our network of global leaders to foster democratic governance, prosperity, and social equity in Latin America and the Caribbean. With further upgrading and conversion facilities, the refineries were able to use a higher proportion of heavier crudes, which represented the major volume of reserves in the country. A succession of grants followed during tne 19th century, and the systematic exploitation of the country's large hydrocarbon reserves started during the 27-year dictatorship of General Juan Vicente Gmez, which lasted from 1908 to 1935. Frontera Energy Corporation Executive Director Petrleos de Venezuela, S.A. (PDVSA), is a national company strongly committed to the Venezuelan people. Inter-American Dialogue PDVSA's success in exploration has resulted mainly from discoveries made around 1987 at El Furrial in the eastern state of Monagas, with estimated reserves of 538 million barrels and with an upside potential of 1.1 billion barrels, in the Ceuta South-Southeast field in Lake Maracaibo with estimated recoverable reserves of one billion barrels, and in the Guafita field in Apure, next to the Cao Limn field in Colombia, with estimated recoverable reserves of 500 million barrels.