En Español

Very usefull links


News links




Dow Jones

Oil price



Views and News






Venezuela and Rosneft discussing Citgo collateral swap




By Reuters Staff

Petroleumworld 10 05 2017

Venezuela's oil minister confirmed on Wednesday that state oil company PDVSA is negotiating to swap Russian oil producer Rosneft's collateral in Venezuelan-owned, U.S.-based refiner Citgo, adding that results are expected “very soon.”

Reuters exclusively reported in July that Rosneft was negotiating to switch its collateral in the refiner for oilfield stakes and a fuel supply deal - a move to avoid complications from U.S. sanctions and legal problems, sources said at the time.

State-owned Rosneft holds a 49.9 percent collateral in Citgo for a loan last year of about $1.5 billion to the OPEC nation, which is reeling from low oil prices and a severe recession.

“We are discussing,” Venezuelan Oil Minister Eulogio Del Pino said at an energy forum in Moscow when asked about the potential collateral switch, adding results were expected “very soon.”

Further details were not immediately available.

The arrangement with Venezuela's state-owned oil firm, PDVSA, has drawn fire from U.S. senators who do not want Russia in a position to own a substantial stake in U.S.-based energy assets in potential violation of existing economic sanctions.

But sources with knowledge of the negotiations said it was PDVSA who offered the Citgo stake and that Rosneft is not interested in taking over the refinery should a battle ensue for highly indebted PDVSA's assets in the event of a default.

However, it remains to be seen if Venezuela can offer attractive enough assets or supply deals to rival the value of the Citgo collateral.

A new deal with Russia could also intensify criticism of unpopular leftist President Nicolas Maduro. His opponents accuse him of selling off prized oil assets to raise the cash he needs to prop up his administration amid violent street protests and shortages of food and medicine.

A Reuters Special Report in August revealed that Venezuela's unravelling socialist government is increasingly turning to ally Russia for the cash and credit it needs to survive – and offering prized state-owned oil assets in return.

Reporting by Vladimir Soldatkin; Writing by Alexandra Ulmer; Editing by Andrea Ricci from Reuters.

reuters.com 10 04 2017

We invite all our readers to share with us
their views and comments about this article.

Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels


Nov 13-14 ;
Mexico City, Mexico










Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld ™  / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.