& Tobago

Very usefull links


News links




Dow Jones

Oil price



Views and News





Venezuela's Guaido aims at control of PDVSA, Citgo as U.S. imposes sanctions



By Corina Pons, Marianna Parraga / Reuters

Petroleumworld 01 29 2019

Venezuelan opposition leader and self-proclaimed president Juan Guaido ordered congress on Monday to appoint new boards of directors to state oil company PDVSA and U.S. subsidiary Citgo, shortly before the United States imposed sanctions on the firm.

The moves were aimed at intensifying pressure on President Nicolas Maduro, who was re-elected last year in a contest widely seen as fraudulent.

Guaido proclaimed himself president last week, but without a source of revenue or control of the military, he faces difficult odds in assuming the post, despite support across most of the Western Hemisphere.

Guaido, who has not yet appointed a Cabinet, faces the intricate legal challenge of nominating new leadership for PDVSA and its subsidiaries, including Citgo Petroleum, who would manage the companies during a transition.

The White House's measures to freeze PDVSA's U.S. assets, including proceeds from oil exports, and limit the company's transactions are an attempt to largely cut off Maduro's access to oil revenue that accounts for most of the country's income in hard currency.

U.S. refineries in the United States can receive Venezuelan oil already paid for and currently at sea, Treasury Secretary Steven Mnuchin said.

“If the people in Venezuela want to continue to sell us oil, as long as the money goes into blocked accounts we will continue to take it. Otherwise, will we not be buying it,” Mnuchin told reporters in Washington on Monday.

U.S. national security adviser John Bolton said the sanctions would block $7 billion in PDVSA's assets “plus over $11 billion in lost export proceeds over the next year.”

It is unclear if Venezuela will continue selling oil to customers in the United States.

Venezuela exports about 500,000 barrels of oil daily to the United States, mostly to Citgo and refineries owned by Valero Energy Corp and Chevron Corp. The country's production has dropped in recent years to about 1.4 million barrels a day because of economic mismanagement and lack of investment.

Maduro remains in control of the country because of support from the military, despite massive protests against his government amid an economic crisis that has caused millions to flee the country. Many people are going hungry, while inflation has skyrocketed and left basic goods unaffordable.


The sanctions do not prohibit deals between PDVSA and major U.S. oil-companies operating in Venezuela, including Chevron, Halliburton Co and Schlumberger NV. It does, however, prevent U.S. firms from exporting certain oil products Venezuela needs to blend with its own crude for sale elsewhere.

Attempting to redirect funds to Guaido's team could give him maneuverability in the short term as appointing new boards at PDVSA and Citgo could take a long time, according to experts.

Frank Holder, the head of Berkeley Research Group's Latin American practice, said Guaido could face difficulties in appointing a Citgo board against the wishes of its parent.

But Guaido's team may try a number of things, even if they are unlikely to work, because “politically it shows he is trying to do something, that he has power,” Holder said.

The United States imposed sanctions on Venezuela and PDVSA in 2017 that prevented Citgo from repatriating dividends to its parent company. Citgo had about $500 million in cash at the end of September, according to a creditor who spoke to Reuters last week, and $900 million in available credit.

Citgo also faces a July deadline to refinance its revolving credit, a task that could be delayed because of sanctions affecting the subsidiary's ability to access to credit.


We invite you to join us as a sponsor.

Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.

Hit your target - Advertise with us

PW 300.000 plus request per week

Reporting by Corina Pons in Caracas and Marianna Parraga in Mexico City; Additional reporting by Matt Spetalnick and Steve Holland in Washington and Tom Hals in Wilmington, Delaware; Editing by Bill Trott and Peter Cooney ra Writing by Anthony Esposito Editing by Daina Beth Solomon and Dan Grebler from Reuters.

01 28 2019

Copyright© 1999-2019 Petroleumworld or respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions Petroleumworld.com as the source.

Other stories you have to get authorization by its authors. Internet web links to http://www.petroleumworld.com are appreciated.

Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!

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

Twitter: @petroleumworld1


Contact: editor@petroleumworld.com,

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

CopyRight © 1999-2019, Elio Ohep A. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2019, Petroleumworld ™  / Elio Ohep - All rights reserved


This 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.