Igor Sechin is lured into Venezuelan swamp

PDVSA invited Rosneft to get a share in the joint venture with the US Chevron.
The Venezuelan oil company PDVSA offered Rosneft a stake in the joint venture Petropiar, Reuters reports citing five sources in the industry. It is about 10% in a joint venture on a heavy oil field and an installation to improve its quality with a capacity of 210,000 b/d. In total PDVSA owns 70% in the joint venture, another 30% are owned by the American company Chevron.

The reaction of Rosneft to the proposal of the Venezuelan party is still unknown. In case of agreement, the Russian state company, which is under US sanctions, will become a partner of the corporation from the United States.

An attempt to realize 10% in the joint venture, according to the two interlocutors of the agency, is only part of a comprehensive plan to attract cash to repay the debts of PDVSA. The situation is complicated  by the 10 percent reduction in Venezuela's production under OPEC, which only worsened the economic situation in the country.

The unicameral parliament, the National Assembly, controlled by the opposition, "must coordinate any transaction of national importance," said deputy Jose Guerra, head of the finance commission, to the agency. "If PDVSA sells 10% of Petropiar to Rosneft (without agreement), this sale will be void," he said.

In 2016, Rosneft bought from the PDVSA an additional 23.33% in Petromonagas JV and increased its stake in the project to 40%. In February, the parliament called the sale of state property "a treason" and blocked the deal. The Russian company, then, didn't recognize the right of the assembly to exert influence on the deal, stating that it was the prerogative of the Supreme Court

It was also reported that PDVSA transferred 49.9% of its American subsidiary Citgo as collateral for a loan to a Russian company. PDVSA reported in March that it had received $1.985 billion in prepayments for the supply of oil and petroleum products as part of a deal secured by 49.9% of Citgo. Rosneft has already issued loans to the Venezuelan partner for $4-5 billion, the agency is sure, but their conditions are not known.