México

Guyana

Trinidad
& Tobago




Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

Venezuelan sanctions: US gives non-US firms three months to wind down PDVSA deals

 


 

By Brian Scheid / Platts

WASHINGTON

Petroleumworld 02 04 2019

The US Treasury Department said Friday that transactions between non-US firms and PDVSA, Venezuela's state-owned oil firm, which involve the US financial system or US commodity brokers would be prohibited after April 28.

In a series of answers to "Frequently Asked Questions," Treasury's Office of Foreign Assets Control clarified that these non-US entities had three months to wind down these transactions with PDVSA, indicating US sanctions on Venezuela's oil sector may be more extensive than many analysts initially thought.

But these sanctions are not secondary sanctions, explicitly prohibiting oil and product trade between PDVSA and foreign firms, sources said.

"While it superficially looks like secondary sanctions, my understanding is that it means third parties can't use dollars, not that they can't trade in non-dollar currencies," said Kevin Book, a managing director with ClearView Energy Partners. "It wouldn't surprise me, however, if Treasury wrote it this way as sort of a high inside pitch for those who might be looking for an end-around."

In the FAQ document Friday, Treasury's OFAC also explicitly prohibited swap transactions, under which US refiners would buy Venezuelan crude sold by PDVSA through a third party.

"It is certainly clarifying that this category of trade cannot occur," said Elizabeth Rosenberg, director of the energy program at the Center for a New American Security and a former senior sanctions adviser at the Department of the Treasury. "I don't think this was a loophole more than it was an area of enormous confusion for the last couple of days."

But Treasury Friday did not provide additional clarity on US shipments of diluent, which were subject to an immediate prohibition Monday.

PDVSA uses naphtha from the US to thin its heavy crude so it can be shipped.

Several US shippers had diluent shipments in process to Venezuela when sanctions were announced Monday, and those shipments have been left in limbo since, according to Ginger Faulk, a partner with the Eversheds Sutherland law firm.

The US ships about 120,000 b/d of petroleum products to Venezuela, according to S&P Global Platts Analytics, and exports about 50,000 b/d of naphtha to Venezuela, according to Nicolas Daher, an oil analyst at FGE.

Losing access to US diluent would put between 200,000 and 250,000 b/d of Venezuelan oil production at risk, Daher said.

Under the new sanctions, US refiners will be permitted to continue to import Venezuelan crude, at least for three months, but payments for these crude shipments must be deposited into a blocked, interest-bearing account located in the US until Venezuelan President Nicolas Maduro leaves office, a requirement which is expected to immediately shut down crude flows between Venezuela and the US.


________________________


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.

________________________

Edited by Valarie Jackson from Platts / SPGlobal.

spglobal.com
02 01
2019

 

Hit your target - Advertise with us

PW 300.000 plus request per week

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


 

TOP

Contact: editor@petroleumworld.com,

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

CopyRight © 1999-2019, Paul Ohep F. - 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.