Thursday, 5 June 2014

How many barrels has the Venezuelan regime pawned?

In the last few years the Chavista regime increasingly borrowed money by promising to deliver oil in the future. The government has been doing that in spite of the fact oil prices have remained at very high levels. 

I want to ask my readers to send me information about all the different agreements of "money now for oil in the future". There is only so much oil Venezuela can produce and, given the corruption and complete incompetence of Venezuela's government and of the current state oil company PDVSA, things will have a limit. That limit will to a big extent decide how many days the regime has.

Thanks for your help.

Chinese loans (past):
?? 20 billions pending for ??? oil

Chinese loans (past), refers to the same stuff:
More details on the "rounds"

Chinese loan (latest): 05.2014
Got: $5 billion

Russian loan: 24.05.2014
1.6 million tonnes of oil
7.5 million tonnes of oil products within 5 years
Got: $2 billions

1 comment:

  1. As of right this date they have loans from ChevronTexaco, Halliburton, Schlumberger, and Weatherford. These are companies involved in the oil business or providing services to PDVSA and the joint ventures. I don´t have details but the media has reported the ChevronTexaco loan was $2 billion.

    I have heard of cases when state oil companies were way behind in their payments or oil shipments they had committed, and they remedied this by issuing bonds to the creditors (these would be either oil multinationals or the large service and drilling companies). These companies usually take the bonds and resell them in the open market as soon as possible, and take their haircut immediately. It´s not unusual for the bond to sell at 70 % of face value, but the companies face too much country risk as it is.

    Sometimes the country risk is offset by service companies by overpricing their services. This is one reason why drilling a well in Venezuela is so much more expensive than an identical well in Texas. I´ll be around if you want to ask specific questions.


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