Guaid has already presented some ideas about his economic stabilization plan, which proposed anchoring the bolvar currency with respect to the U.S. dollar. PDVSA operates under broad Definitions.net. // Photo: @jguaido via Twitter. 2008-20 on September 12, 2006, except for budget approval, Management Report, and any other decisions related to the indebtedness of the corporation, all of which have to be ratified by the Board of Directors to be legally valid. Venezuelan businessman Luis Giusti Lugo, the son of a former PDVSA president, will replace CEO Jorda on the Citgo Petroleum board, while Ernesto Hernndez Bolvar will replace Pablo Prez on the same board, the statement said. It would be interesting to know what was the rationale of the NY lawmaker when it decided that this multilateral choice of law rule should exclude freedom of choice. Gas reserves in the country are estimated at 93 trillion cubic feet of gas. PDVSA does not enjoy any tax privilege except for the tax-free receipt of 10% of the net income from its subsidiaries' export sales which, for accounting and tax purposes, is viewed as a cost incurred by the subsidiaries. WebPetrleos de Venezuela (PDVSA) comprised of the President, two Vice-Presidents, Our current directors are: Certain information on our current directors is set forth below: All rights reserved. governs . As with previous OFAC designations, U.S. sanctions need not be permanent and are intended to change behavior. Unlike the 2017 Notes, the 2020 Notes were secured by a pledge of a 50.1% equity interest in CITGO Holding, Inc. (CITGO). The US also used personal sanctions first selectively imposed by the Obama administration in 2015 to target top government officials and political figures as well as private-sector actors believed to be connected with the Maduro government. The Inter-American Dialogue hosted a private roundtable event featuring Ricardo Luna, the Peruvian Minister of Foreign Relations. PDVSA's last representative was Oswaldo Perez (Vice President Finance at PDVSA). Without Assembly approval, the 2020 Notes could even be deemed as legally non-existent under Venezuelan law and, as such, they could not have any effect inside or outside Venezuela, because the choice of law clause electing New York law as applicable lacked the Assembly approval for it to begin its effectiveness in the first place. But what is peculiar in this case is that the mandatory rule, if I understand correctly, is a multilateral choice of law rule. Guaid appointed a new PDVSA board of directors, which was recognized as the legitimate board by the United States even though it does not control the companys operations inside Venezuela. Si quieres estar al da y conocer todas las noticias y promociones de Bodegas Torremaciel. PEDRO RAFAEL TELLECHEA RUIZ PEOPLES MINISTER OF PETROLEUM. Guaido would also appoint Angel Olmeta, Luis Urdaneta and Edgar Rincon to Citgos board of directors, sources said. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. In January 2020, Rosneft Trading S.A. facilitated, on behalf of PdVSA, a shipment of two million barrels of Merey-16 crude oil from Venezuela to West Africa. A fusion of tradition, modernity and surroundings. Guaid appointed a new PDVSA board of directors, which was recognized as the legitimate board by the United States even though it does not control the companys operations inside Venezuela. Chief Executive Carlos Jorda was replaced at the boards of Citgo Petroleum and parent company Citgo Holding. Note added28/06/2021: impostors are using this site's former editor's full name, and a fake email addresses (alek.boyd.arregui@gmail.com)to send copyright infringement claims / take down requests to web hosting companies (exhibit Hostgator). As president of the National Assembly, he has assumed the powers of interim president in accordance with Article 233 of the Venezuelan Constitution, given the end of the presidential term and the illegitimate elections held last May. On the other hand, the term validity may be interpreted to refer only to the corporate law of Venezuela. Discover People Learning Jobs Join now Sign in Project Director jobs 99,252 open jobs If the term was as sweeping as the plaintiff claimed, the court reasoned, there would be more cases where the courts had applied Section 8-110. The rest was owned by Finland's Neste group. These rules matter. This was the result of increased exploration activity and the addition of 26 billion barrels from the Orinoco oil belt. Suscrbete a nuestro boletin de noticias. The entitys board was appointed by Nicols Maduro, who claims to be the president of Venezuela. The government's fiscal share composed of royalties, income tax, and other taxes, amounted to US$5.64 billion in 1988, representing almost 60% of total revenues of US$9.51 billion. Just days later, trading of bonds slowed down after the U.S. Treasury Department clarified its new sanctions included Venezuelan government-issued bonds. Together, we work to shape policy debate, devise solutions, and enhance cooperation within the Western Hemisphere. As President of PDV Holding, Inc., Samuel Wilhelm is an experienced global oil and gas business Exeario Boscn. Under this narrower interpretation, it is irrelevant whether the National Assembly approved the 2020 Bonds because all of the corporate formalities needed to validly issue a securityapproval by the board of directors, approval by the shareholders, etc.appear to have been followed. Exeario Boscn is a The assets of the industry were acquired from the ex-concessionaires based on a net book value of US$1.17 billion. WebPetrleos de Venezuela, S.A. (PDVSA, Spanish pronunciation: [peeesa]) (English: Petroleum of Venezuela) is the Venezuelan state-owned oil and natural gas company. The fate of the 2020 Notesand the billions of dollars those notes representis now in the hands of the New York Court of Appeals. Our goal is the efficient and transparent management of Venezuelan resources under rules that regulate our structure and operations and following professional and ethical principles to benefit the interests of Venezuela. . PDVSA continues to invest in its production facilities with the intention of increasing production in a few years' time. 6.740, the President of the Bolivarian Republic of Venezuela, Nicols Maduro, appointed Pedro Rafael Tellechea Ruiz as Minister of Popular Power for Petroleum. At meeting 2016-07 on May 2, 2016 the Board of Directors approved changes to the Executive Committee it is now composed of the president of Petrleos de Venezuela, S.A. as president of the committee, and the executive vice president and internal directors as members. Choice-of-law rules can be complex, confusing, and difficult to apply. The proportion of light and medium crude oil in Venezuela's export package declined between 1976 and 1984, with a complementary increase in the volume of heavy crude exports. In 1990 Propernyn became the sole owner of CITGO. "Citgo continues working to improve profitability, control expenses and reduce costs in order to make the company an even better financial partner to our stakeholders and enable us to pay dividends to our shareholder as soon as we are financially and legally able to do so," the statement added. Finally, we can read about how these great companies came about with Company Histories.. As a result, thousands of workers have abandoned their work for PDVSA, especially after PDVSA was put under military control. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. As a result, the regulations issued by OFAC have nearly paralyzed trading of Venezuelan bonds. Disclaimer: Justia Annotations is a forum for attorneys to summarize, comment on, and analyze case law published on our site. His partner Betancourt, is part of several ongoing criminal probes. OFAC also designated the chairman of the board of directors and president of Rosneft Trading S.A., Didier Casimiro, for purporting to act for or on behalf of, directly or indirectly, Rosneft Trading S.A. Rosneft Trading S.A. and its president brokered the sale and transport of Venezuelan crude oil, said Secretary Steven T. Mnuchin. There is lower default risk in Citgo than in PDVSA, but the difference is not enough to justify taking a yield of 10% when PDVSA's October 2015s offer an annualised yield of around 24%. Profits were also used to assist the presidency, with funds directed towards allies of the Venezuelan government.With PDVSA focusing on political projects instead of oil production, mechanical and technical statuses deteriorated while employee expertise was removed following thousands of politically-motivated firings. See here for a complete list of exchanges and delays. TheLatin America Advisor features Q&A with leaders in politics, economics, and finance every business day. Five years later, in 1948, the Venezuelan congress passed a new income tax law, establishing the so-called 50-50 system that would become a landmark in relations between the international oil companies and the governments of the various oil-producing countries. It held that the 2020 Notes were valid and enforceable and that the defendant trustee was entitled to judgment in the amount of $1.68 billion. It does not deal with the process of entering into contracts for the transfer of securities or regulate the rights and duties of those involved in the contracting process (emphasis added). These discoveries have added between 10 and 12 billion barrels of light and medium grade crude oil to a reserve base which was disproportionately biased towards heavier oils. In August 2019, Rosneft Trading S.A. negotiated a shipment of two million barrels of Venezuelan crude oil with PdVSA and was able to find a vessel willing to transport the cargo despite difficulties that came with doing business in Venezuela. Tuesday's shakeup introduced five new appointees tied to different opposition parties, some of them the sons of former PDVSA executives. A holding company, PDVSA, was established to coordinate, supervise, control, and plan the activities of its subsidiaries made up of the 14 former operating companies. The man provided a raw material for the syrups, which are linked to the deaths of more than 70 children in Gambia. The new PDVSA includes: Pedro Rafael Tellechea Ruz, president. Didier Casimiro is the chairman of the board of directors and president with sole signing authority of Rosneft Trading S.A. Casimiro has held meetings with Petroleos de Venezuela (PdVSA) officials that have involved assessing projects and opportunities to strengthen strategic relationships for Rosneft Trading S.A. with PdVSA. PDVSA's first downstream venture outside Venezuela took place in West Germany in 1983 when it entered into a joint venture partnership with Veba Oel to supply 155,000 barrels of oil per day. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Major switching from oil to gas is not envisaged until 1992, after completion of the Nurgas pipeline from Anozategui to the West. Since 1978 it has been responsible for the petrochemical sector, and in 1985 it was entrusted with the development of the country's coal resources located in western Venezuela. Citgo split from Venezuelan state-run oil company PDVSA in 2019 after the U.S. imposed sanctions intended to oust Venezuela's President Nicolas Maduro. Board of Directors shall be composed of no less than seven and no more than eleven members appointedby presidential decree for an initial term of two years, renewable for equal terms or until a new Board of Directors is appointed. The publication is available to members of the Dialogues Corporate Programand others by subscription. 13850, as amended, for operating in the oil sector of the Venezuelan economy. Message to INFODIO readers: investigative journalism, which is what this site does, takes lots of time.Visiting media looking for a quick run down on Venezuela's gargantuan corruption, have the decency to at least cite the source when plagiarising this site's content without attribution (exhibit Reuters hereand here, exhibit Bloomberg here, exhibit OCCRP here). On the other hand, if the court concludes Venezuelan law applies to the particular issue of PDVSAs legal authority to execute the Exchange Offer, then we would likely remand for an assessment of Venezuelan law on that question and, if necessary, for consideration of the Creditors equitable and warranty claims. If the notes were not validly issued, they are not binding on PDVSA, and the CITGO assets may not be seized by the noteholders in the event of default. The National Assembly statement did not provide a reason for the moves, which come after several previous management changes at the company. How does PDVSA exercise its rights at Nynas? The 2020 Notes contain New York choice-of-law clauses. The Ceuta field produces 100,000 barrels per day and is expected to reach 200,000 barrels per day in 1993. In September 2019, PdVSA supplied a shipment of one million barrels of Merey-16 to Rosneft Trading S.A., which was loaded on a vessel in Venezuela and destined for Asia. The new members of the board of directors are: 1. The Eleventh Circuit affirmed because the district court could not grant the motion without addressing a nonjusticiable political question. Billions of dollars were riding on the answer. This system refers to an agreement where by concurrent owners bear all expenses equally. WebThe new members of the board of directors are: 1. HECTOR ANDRS OBREGN PEREZVICE PRESIDENTEXECUTIVE, LUIS ENRIQUE MOLINA DUQUE VICE PRESIDENT OF EXPLORATION & PRODUCTION, LEYLI BEATRIZ FERRER AVENDAOVICE PRESIDENT OFPLANNING AND ENGINEERING, HEIFRED JHOSELIN SEGOVIA MARRERO VICE PRESIDENT OF FINANCE, GNESIS SABRINA RON SOLANOVICE PRESIDENT OF INTERNATIONAL COMMERCE AND SUPPLY, JUAN CARLOS DAZ SOCORROVICE PRESIDENT OF COMMERCE AND SUPPLY, GUSTAVO ADOLFO BOADAS DAZ VICE PRESIDENTOF REFINING, JUAN VICENTE SANTANA MIGLIACIN VICE PRESIDENT OF GAS, RONNY RAFAEL ROMERO RODRGUEZVICE PRESIDENT OF INTERNATIONAL AFFAIRS, YURBIS GMEZ EXTERNAL DIRECTOR RICARDO LEN EXTERNAL DIRECTOR SIMN ZERPA DELGADO EXTERNAL DIRECTOR WILLS RANGEL EXTERNAL DIRECTOR RICARDO MENNDEZ PRIETO EXTERNAL DIRECTOR. The discussion highlighted the Ministers position on the best way for the international community to handle the crisis in Venezuela and how to confront infrastructural-based corruption throughout Latin America. https://conflictoflaws.net/News/2020/08/CoL_Banner-1.png, The Billion-Dollar Choice-of-Law Question, PhD/Research Assistant Position at the University of Cologne. The nationalization of the industry required the creation of a functional structure that would allow normal operation to continue within the new legal scheme. The plan also includes the privatization of the many companies nationalized during the Chvez and Maduro governments, stopping the monetization of the fiscal deficit by the Central Bank and strengthening its autonomy. PDVSA supplies local markets through its four main operating subsidiaries, Lagoven, Maraven, Meneven, and Corpoven, which operate supply depots and about 1,600 petrol stations. Inter-American Dialogue PDVSA operates under broad policy guidelines issued by the government. WebSearch By Name. While Maduros stepping down could expedite the investors path to recovery, it is uncertain if a new government in Venezuela would have debt servicing as a priority, especially if it is in need of massive amounts of capital. Further steps toward nationalization were taken through a series of laws covering the natural gas industry, the domestic petroleum products market, and the merchant marine. Interesting topic. A succession of grants followed during tne 19th century, and the systematic exploitation of the country's large hydrocarbon reserves started during the 27-year dictatorship of General Juan Vicente Gmez, which lasted from 1908 to 1935. The district courts analysis of this issue has attracted support from some commentators and criticism from others. Brussels; Chicago; Denver; Doha; Indianapolis; London; Los Angeles; New York All rights reserved. On the one hand, the term may be interpreted broadly to refer to both the corporate law of Venezuela and to Venezuelan law more broadly. It is also worth repeating that Francisco Convit, a GPB associate, is a Justice Department fugitive. Under the Hydrocarbon Law, every agreement for PDVSA to cede exploration and production rights is illegal and unconstitutional. We're doing our best to make sure our content is useful, accurate and safe.If by any chance you spot an inappropriate comment while navigating through our website please use this form to let us know, and we'll take care of it shortly. PDVSA's proved reserves rose from 18.2 billion barrels in 1976 to 58.35 billion barrels in 1989. Although heavy fuel yield dropped from 61% in 1976 to 27% in 1986, it was still too high in 1991 for PDVSA's key U.S. market, where heavy fuel oil amounts to only 8% of total demand. The U.S. government will not roll back its sanctions as long as Nicols Maduro is in power. The products sold are petrol, aviation fuel, diesel fuel, lubricants, kerosene, and asphalt, with petrol accounting for almost half of total consumption. On March 1, 1978, PDVSA assumed full responsibility for the country's petrochemical industry when the government transferred the ownership of Petroqumica de Venezuela SA (Pequiven) to PDVSA. The National Assembly took the position that these notes were contracts of public interest which required legislative approval pursuant to Article 150 of the Venezuelan Constitution. The PDVSA board formally approved the exchange of notes in 2016. On March 22, 1974, a committee was set up to prepare a draft bill whereby the state itself would maintain the industry and trade of hydrocarbons. Registered in the Canton of Geneva, Switzerland as a trading company in January 2011, Rosneft Trading S.A. was created to assist Rosneft Oil Company in carrying out its foreign projects. "pdvsa." It is evident that PDVSA is no longer involved in any meaningful way with Nynas, neither at the executive level nor as a crude provider. Since the aggregate value of the 2020 Notes is far greater than $250,000, and since the 2020 Notes have no relation to personal, family or household services, it may seem that the court should simply apply New York law and call it a day. These are critical initial steps for the Guaid administration to restore credibility.. Subsidiary Propernyn PDVSA bought 50% of CITGO from the Southland Corporation. As consumers, we often take for granted all the hard work that goes into building a great company. Then congress chief Juan Guaido appointed new boards and won U.S. court recognition of their authority over the refining subsidiary. This term validity is not generally understood to refer solely to corporate formalities. Maduro's regime is insisting in the oil industry's de-facto privatization, which is aggravating its collapse. WebGiven the current political situation in Venezuela, the PDV Holding board was elected by the ad hoc Board of Directors of PDVSA which was appointed by, and now accountable to, As Maduro continues to resist pressure to resign, sanctions will increasingly restrict his access to cash and hinder his ability to move petroleum. The government also began to feel that the previous policy of awarding service contracts would not be successful because it would not provide a more viable alternative to the outright nationalization of the industry. Hernandez Bolvar will fill the seat vacated on that board by Luisa Palacios in October. In addition, the law established that companies would have to deposit 10% of their assets with the government to ensure that all such assets would be properly maintained by the companies until complete reversion took place. The opposition has moved to appoint a new board of directors for Citgo. Locations. In 2016, Venezuelas state-owned oil company, Petrleos de Venezuela, S.A. (PDVSA) approved a bond exchange whereby holders of notes with principal due in 2017 (the 2017 Notes) could exchange them for notes with principal due in 2020 (the 2020 Notes). Autol - Calahorra Motorway (LR-282) Km 7,Calahorra (La Rioja) - info@torremaciel.com - +34 941163021 - +34 941163493. At the same time it was felt that the companies--which would lose their concessions at a given date--were not investing enough to maintain their equipment and fields in working order, and without any guarantees of future profits the companies would disinvest and hand over the concessions in 1983, when the concessions expired, in a poor state. Petrleos de Venezuela, S.A. (PDVSA), is a national company strongly committed to the Venezuelan people. learn how over 7,000 companies got started! With this goal in mind, between 1978 and 1987, the company decided to upgrade its refineries in Amuay, Cardn, and El Palito to reduce the proportion of residual fuels obtained in the refining process and increase the proportion of naphtha, gasoline and distillates. Commercial marketing of the fuel has started at a modest level of 20,000 barrels per day, but could reach 600,000 barrels per day by the middle of the decade. N.Y. General Obligations Law 5-1401 states that a New York choice-of-law clause should be enforced whenever it appears in a business contract worth more than $250,000 in the aggregate. With the stakes in mind, let us now turn to the applicable choice-of-law rules. The Maduro governments inconsistent macroeconomic policies resulted in a significant GDP contraction and hyperinflation before any significant U.S. sanctions were in place, so the latest sanctions (including those on PDVSA) just complicate an already difficult outlook for Venezuelan debt holders. Morn manufactures fertilizers as well as several chemicals for the domestic market. This field covers an area of approximately 42,000 square kilometers and is considered one of the most important untapped reserves of heavy oil in the world. As a result of PDVSA's exploration record, this trend was reversed in 1985, so that by 1988 exports of light and medium crudes accounted for 50% of PDVSA's crude export package. But the United States Department of State has concluded that Maduro is not Venezuelas legitimate political leader. Libertador con calle El Empalme Complejo MinPetrleo - PDVSA, La Campia, Caracas - Venezuela. The application of choice-of-law rules can turn a winning case into a losing case (and vice versa). Petrleos de Venezuela, S.A. (PDVSA, Spanish pronunciation: [peeesa]) (English: Petroleum of Venezuela) is the Venezuelan state-owned oil and natural gas company. WebCaracas.- On May 3, 2018, Decree N 3398 of the Presidency of the Republic was published in Official Gazette N 41389, by means of which the Board of Directors of Petrleos de Finally, I discuss the choice-of-law question that lies at the heart of the case. WebThe members of the Board of Directors of PDVSA are: President: Manuel Quevedo Fernndez Vicepresident of Production and Exploitation: Miguel Quintana Castro, substituting Nelson After Guaid assumed office, his government appointed a new board of directors to governPetrleos de Venezuela, S.A. (PDVSA), Venezuelas state - owned oil company. As a prime source of hard dollars through both its earnings and crude oil purchases, Citgo will be the most valuable asset of a new Venezuelan government, and preserving its ownership without allowing any funds for the existing Maduro government is the most pragmatic course of action. A Maduro exit would create uncertainty until the new government decides which bond issuances and other obligations they will honor. During 1989, PDVSA produced around 1.6 million barrels of oil and condensate per day. GPB and large institutional creditors (banks) were dealt with, while Neste's 49% -which had written off its Nynas' stake- was acquired by a shell calledBitumina Industried Ltd, whichwouldfile for bankruptcy in London shortly after. Presentado por Juan Carlos Iragorri, con la participacin de Xavier Vil, periodista y analista cataln; Jos Lpez Zamorano, corresponsal jefe de Notimex Mxico; Michael Shifter, presidente del Dilogo Interamericano. On July 9, the Incumbent Directorsthe current directors of the CITGO Entities appointed through Guaids PDVSA Managing Board filed an Answer and Counterclaim for a declaration that they compose the rightful boards of the CITGO Entities. PDVSA supplies the domestic market with approximately 335,000 barrels per day of petroleum products, which represent approximately 20% of total production. The Eleventh Circuit affirmed the district courts ruling denying intervenors motion to reopen and You're all set! STANDS4 LLC, 2023. Sources reported that a mezzanine loan given to Nynas by Betancourt and outstanding debt owed to Petrozamora (joint venture formed by Betancourt, Ivanov and co with PDVSA, which wasNynas' largest crude provider), guaranteed GPB's seat at the reorganisation table. [This post is cross-posted at Transnational Litigation Blog.]. Javascript is not enabled on your browser. Although PDVSA is a state enterprise, it is expected to finance its normal investment program from its own resources, under a 10% cash flow mechanism whereby 10% of pre-tax export sales profits may be retained for the purpose of reinvestment by the company. However, under the amendments that the U.S. Office of Foreign Assets Control (OFAC) made to its regulations on Feb. 1, first, U.S. persons can no longer purchase any additional bonds; second, current bondholders can transfer such bonds to non-U.S. persons only; and third, U.S. financial institutions involved in a transfer or divestment of Venezuelan bonds must review all information that is or should be in their possession to confirm that such bonds are not being transferred to U.S. persons. The United States is determined to prevent the looting of Venezuelas oil assets by the corrupt Maduro regime.. Alessandro Bazzoni reportedly behind United Petroleo: where does that leave Luis Giusti? In a lengthy decision decided on October 16, 2020, the U.S. District Court for the Southern District of New York (Judge Katherine Polk Failla) concluded that the term validity should be given a narrow interpretation and that New York contract law governed the issue of validity. In 2019, the United States recognized Venezuelas Interim President Juan Guaid as the lawful head of state.