Russian Production & Stakes in Venezuelan Oil Projects (40% stake is limit)
Last October & November I succeeded in interviewing several people in the Venezuelan private sector directly knowledgeable of Russian oil projects with PDVSA. Many Venezuelans wonder what all the Russians-known for their secrecy-are up to there. Some of my key findings are in Americas Quarterly‘s Winter 2016 edition. Read on …
Russia Is Beating China to Venezuela’s Oil Fields – By THOMAS W. O’DONNELL
The profits, politics and luck behind Russia’s growing footprint.
The late Venezuelan President Hugo Chávez, had long envisioned China becoming Venezuela’s biggest oil-sector production partner. So when Rafael Ramírez, then president of Petróleos de Venezuela, S.A. (PDVSA), announced in January 2013 that Russia would produce enough oil with PDVSA by 2021 to become “the biggest petroleum partner of our country,” very few people believed him. It sounded like empty hype.
Yet it turns out that Ramírez was serious. Three years later, Russian companies are already producing more oil in joint projects with PDVSA than their Chinese counterparts. Official figures are either unreliable or unavailable, but according to field data provided by Global Business Consultants (GBC), a Caracas-based energy consulting firm, Russia-Venezuela production as of late 2015 was 209,000 barrels per day (bpd), compared to China-Venezuela’s at a bit over 171,000 bpd.
Posted in Chavez, Chavez lagacy, China, Energy and Geopolitics, Energy and Geostrategy, Faja of the Orinoco, Global Oil Market, heavy oil, Hugo Chávez, international relations, PDVSA, PDVSA weakness, Putin, Rosneft, Russia, Sanctions, Sechin, Uncategorized, Venezuela oil, Zulia
Tagged China, geopolitics, Hugo Chávez, oil sector, PDVSA, Petróleos de Venezuela, Venezuela
What a strange rebellion against the international financial order. On Sunday 5 July, Greece voted “No!” by a resounding 61% to the bailout conditions insisted upon by Berlin, Brussels and “the creditors.” But, what is truly unique here is the alignment of international forces for renegotiation of Greek debt.
Throughout the post-War era, whenever it came down to imposing “discipline” on other small, debt-defaulting states, the most intrepid champions of the norms of the international financial order have consistently been Washington and the IMF (just ask Argentina’s Mrs. Kirchner, she’ll tell you).
Yet, look who agrees with the Greeks that their debts–in their present magnitude and structure–are impossible and potentially disastrous for the country: Continue reading
Posted in Chavez, Debt crisis, Economic Crisis, Euroepen Union, Germany, Greece, international relations, Putin, Russia
Tagged Berlin, Business and Economy, Europe, European Union, geopolitics, Germany, Hugo Chávez, United States, USA, Washington
Here’s my piece [in Spanish] in Petroguía 2015, the oil-&-gas sector catalog for Latin America Note: Hemispheric integration (e.g., energy infrastructure) was endlessly promoted by Hugo Chavez. In the end, he built none. The region’s resources continue going mainly to develop other regions, such as China. Continue reading
Posted in Brazil, Chavez, China, Colombia, Ecopetrol, Gas globalization, Global Oil Market, Latin America, Latin America and Caribbean, LNG, PDVSA, Petrobras, The USA, Trade policy, Uncategorized
Tagged Beijing, Chavez, China, Energy, energy infrastructure, Heavy crude oil, Hemispheric integration, Hugo Chávez, Latin America, oil sector, PDVSA, Petróleos de Venezuela, South America, Venezuela
If you’re in New York: Luiz Pinto and I speak at Columbia University’s Institute for Latin American Studies (ILAS) on post-Chavez Venezuela, 12-noon, Thursday, 9 October:
Posted in Chavez, Chavez lagacy, Chavez legacy, heavy oil, Hugo Chávez, Latin America, Leopoldo López, Maracaibo, PDVSA, PDVSA weakness, Uncategorized, Venezuela oil, Venezuela update, Venezuelan Democracy
Tagged Caracas, Chavez, Chavismo, Columbia University's Institute for Latin American Studies, Heavy crude oil, Hugo Chávez, Latin America, Maracaibo, Nicolás Maduro, oil sector, PDVSA, Petróleos de Venezuela, Rafael Ramírez, Venezuela
Venezuelan President Nicolas Maduro speaking during the first UNASUR-and-Vatican mediated peace talks with the opposition in Caracas 10 April (Reuters)
Here’s my commentary at Americas Quarterly today, 11 April:
A delegation of foreign ministers from the Union of South American Nations (UNASUR) returned to Caracas on April 7 and 8, securing an agreement to hold peace talks to calm political polarization and protests in Venezuela. The talks are being mediated by the foreign ministers of Colombia, Brazil and Ecuador, plus a Vatican representative.
The UNASUR delegation first visited in late March, recommending that Venezuelan President Nicolás Maduro and leaders of the opposition’s Mesa de Unidad Democrática (MUD) enter into a dialogue. The U.S. State Department had expressed support, as had Organization of American States (OAS) General Secretary José Miguel Insulza.
However, UNASUR’s plan will be complicated by Maduro’s reliance on paramilitaries within his Partido Socialista Unido de Venezuela (United Socialist Party of Venezuela—PSUV), whose loyalty requires his polarizing words and deeds. This conundrum already wrecked a previous dialogue.
In early February, before protests broke out, a highly placed government official explained to me, … CLICK to Continue Reading at Americas Quarterly. Continue reading
Posted in Chavez, Chavez legacy, Energy and Geostrategy, Henry Capriles, Hugo Chávez, Latin America, Leopoldo López, PDVSA, The USA, Uncategorized, Venezuela update, Venezuelan Democracy
Tagged Caracas, Chavez, Chavismo, Hugo Chávez, Latin America, Nicolás Maduro, PDVSA, peace talks, Petróleos de Venezuela, UNASUR, Union of South American Nations, United States, Venezuela, Venezuelan President Nicolas Maduro
- The anti-government protest in eastern Caracas 13 March ended in clashes with Venezuelan police. Three more died in widespread protests. BBC
As protests continue against Venezuela’s faltering “oil revolution,” the political strategy of the chavista administration is striking for its intransigence. President Maduro has refused to recognize any grievances by students or other protesters. He calls protesters “fascists” and blames them for all the ills of the economy. Protests are attacked by the national guard and often by state-organized paramilitary gangs on motorcycles who are praised by the president.
The administration’s strategy so far appears to be that protests will burn themselves out if they can be delegitimized and contained within middle-class areas. Accordingly, the president’s rhetoric aims at inciting poorer citizens against protesters. All in all, this is a risky strategy. Protests have constantly intensified, with perhaps 25 persons dead now.
After a month of protests, the administration has taken urgent economic measures it hopes will undermine the protests and prevent their spread to poor and working-class barrios.
1. Ramirez announces Chinese and Russian loans and the launch of a very liberal Sicad 2
Posted in Chavez, Chavez lagacy, Chavez legacy, China, Faja of the Orinoco, Global Oil Market, heavy oil, Hugo Chávez, Institutions and rule of law, PDVSA, Uncategorized, Venezuela oil, Venezuela update, Venezuelan Democracy
Tagged Beijing, Business and Economy, Caracas, Chavez, China, Energy, Heavy crude oil, Hugo Chávez, Nicolás Maduro, PDVSA, People's Republic of China