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Page added on October 18, 2019

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Russia Ready To Seize Control Of The World’s Largest Oil Reserves

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The Venezuelan government is readying to hand over control over state oil company PDVSA to Russia’s Rosneft, a local newspaper has reported, citing sources from the industry.

Russian TASS reports, quoting El Nacional, that the radical move is being discussed as a way of erasing Caracas’ debt to Moscow. The debt is sizeable: at the end of June this year, money owed to Rosneft alone stood at $1.1 billion. That’s down from $1.8 billion at end-March.

Two years ago, Caracas and Moscow sealed a deal for the restructuring of another $3.15 billion debt to Russia over 10 years with minimum payments over the first six years. Since 2006, Russian loans to Venezuela have reached more than $17 billion in total.

According to the El Nacional report, Moscow had reacted positively to the suggestion, and several commissions had been set up and sent to Venezuela to evaluate the situation at PDVSA. The first feedback from these commissions was reportedly that the company was too large and it needed serious layoffs to become more competitive.

Competitiveness remains questionable, however. Most of the U.S. sanctions on Venezuela have targeted precisely PDVSA because of its vital role as the country’s—and the Maduro government’s—cash cow. Rosneft is the subject of U.S. sanctions, too.

Rosneft is active in Venezuela in joint projects with PDVSA. However, these activities appear to not be in breach of U.S. sanctions, according to the U.S. Special Envoy for Venezuela Elliott Abrams. However, Abrams said last month that sanctions may be coming for the Russian company in the future. If the El Nacional report is confirmed, these will likely come sooner rather than later

Caracas reportedly wants to hand control over to Rosneft without having to go through privatization. In any case, a change of ownership over PDVSA would need to be approved by the National Assembly, which is controlled by the opposition.

OilPrice.com



14 Comments on "Russia Ready To Seize Control Of The World’s Largest Oil Reserves"

  1. Dooma on Fri, 18th Oct 2019 7:27 am 

    I think that it is well overdue for the whole world to tell the US to stick it’s trade sanctions.

  2. Obviously on Fri, 18th Oct 2019 8:16 am 

    Ya, probably US trade sanctions pushed this outcome. Next up: China and RU ditch US dollar as petrol currency; US tips into deep recession.

  3. Dredd on Fri, 18th Oct 2019 8:54 am 

    Hey Pootie Poot, call Rudy Poot or The Donski if you need help (Bull).

  4. Robert Inget on Fri, 18th Oct 2019 8:58 am 

    Watch these pages for fast moving events.
    Not to put too fine a point on it BUT this was predicted rat here 2 years ago.
    Trump,never admits he makes mistakes.
    In the Venezuelan situation Trump shares blame with Obama.

    BOTH Obama and Trump ignored Venezuela.
    Obama, because of pressure from the left,
    (diminishing use of fossil fuels).
    Trump, Just following Putin’s orders to keep clear
    of intervention.

    The facts are clear.
    Russia/China will still need to sell Venezuelan oil.
    Markets, after America’s RECOVERY,will need to buy Venezuelan oil (with euros, once tariff free trade with Europe resumes).

    The wild card is China. When China’s GROWTH falls below 6%, (ours is 2%) there’s a panic.

    Trump started the currency war, China is winning.
    Losing Venezuela was the turning point.

  5. shortonoil on Fri, 18th Oct 2019 9:20 am 

    No diluent, no oil production, and the Russians are not going to import it at $12 a barrel and make money. The Venezuelan fields are some pretty nasty crud. There is not much oil remaining that is worth taking out of the ground, and without a low cost diluent the Venezuelan fields are worthless. Good luck Russia.

  6. Robert Inget on Fri, 18th Oct 2019 10:13 am 

    Shortonoil, Respectfully.
    Of course, tar sands need ‘low cost’ diluent.
    May I say the magic word? ‘LG’ liquid gas.

    In the last 30 years Canada’s Suncor has grown to a 47.4 Billion USD international. Most growth done long before horizontal shale fracking foisted (condensates) on markets. The world is floating on Ersatz crude. (half gas)

    We are going to run shot of diesel. full stop
    Why?
    Cause even beat up Saudi won’t be able to supply enough heavy crude to satisfy distillates demand.

    (this is the first winter w/o Venezuelan crude) Except for Chevron bringing in a few million barrels weekly. EIA is calling this ‘unknown origin’.
    (isn’t it time you guys come clean on your
    ‘adjustments’?)

    Whatever EIA wants to call it, we need that ‘nasty crud’.

  7. supremacist muzzies jerk on Fri, 18th Oct 2019 10:28 am 

    supertards,
    please, new research shows high brain usage shortens life. you bat over the fence all the time to mask your muzzies love. perhaps you need to rest and play with the goats or your auto keltects and ease up on the muzies love appropriately. maybe there’s hope after all.

    muzzies demand bbc to pull child marriage docs due to “disrespect”. muzzies are lovers, they demand love constantly. the muzzies anti-rape machine, muzzies amputation machine, muzzies hamster machine will have a gate labeled “LOVE”, it’s wider than many.

  8. Robert Inget on Fri, 18th Oct 2019 10:29 am 

    On Canada’s East coast refineries take deliveries of crude oil. Most consumed in Eastern provinces.
    But Not ALL.
    Shortonoil says it won’t ‘pay’ to shlep lower cost LNG to Venezuela.
    Canada’s refineries return refined product to
    Europe cheaply in what normally be empty hulls.
    China and Russia will do the same in Venezuela.

    Oh, Shortonoil is going to say Canada has lots of heavy oil to sell (at below cost of production).
    Except, Them pipelines are dancing as fast as the can and can’t reverse direction at the drop of a spanner.

  9. Davy on Fri, 18th Oct 2019 11:05 am 

    Bob, you are just trying to force your agenda of China and Russia will crush the US stating with Venezuela but Short just crushed your binary arguments with reality. You are trying to push a round block into a square one. Your above two comments are just the resulting stuttering. Don’t you think there is more to it than your political agenda of a collapsed USA because of DTrump?

  10. supremacist muzzies jerk on Fri, 18th Oct 2019 11:45 am 

    Davy on Fri, 18th Oct 2019 11:05 am
    thank you supertard for living up to expectation of my project. i’m not saying it to imply i’m the puppet master, you are.
    respectuflly

  11. Davy on Fri, 18th Oct 2019 3:02 pm 

    BTW bobby. Your just jealous cause I’ve been planning for years for the collapse of the US and you haven’t.

    GO TRUMP!!!!!

  12. makati1 on Fri, 18th Oct 2019 5:56 pm 

    Nothing new in this article. Venezuela is in the pockets of Russia and China. Next up, a Russian military base and maybe a Chinese one. Shades of the Cuban Missile Crises! Nukes in Amerika’s backyard! LMAO!

  13. Davy on Fri, 18th Oct 2019 6:10 pm 

    “Nothing new in this article. Venezuela is in the pockets of Russia and China.”

    LOL, nonsense, makato, China and Russia are in Venezuela’s black hole of collapse and they are queuing up for a haircut. You can’t get blood from a turnip. China and Russia violated the first principal of money recovery and that is your first hit is generally the best and after you throw good money after bad is your worst bet.

  14. Cloggie on Sun, 20th Oct 2019 3:31 am 

    “Trump, Just following Putin’s orders to keep clear
    of intervention.”

    Why should he “follow orders”?

    GDP

    Russia 4T
    USA 20T

    Give me a break.

    Trump isn’t “following orders”, he is CONSPIRING with Putin. What Putin did for Russia, namely getting rid of the (((oligarch))) rule 1990-2000, Trump wants to do the same for the US (1913-2016).

    The entire US right, from Ann Coulter to Richard Spencer, have prematurely written off DJT. Trump is a closet white nationalist, preparing for the end of empire and dissolution of the (not so) United States.

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