Russia Lent Venezuela State Oil Firm $1b in April
Russia Lent Venezuela State Oil Firm $1b in April

Russia Lent Venezuela State Oil Firm $1b in April

Russia Lent Venezuela State Oil Firm $1b in April

Russian state oil producer Rosneft in April made a $1.015 billion advance payment to PDVSA, Venezuela’s state oil firm, under a crude oil purchase agreement with the company, Rosneft said in a quarterly financial report.
As Petroleos de Venezuela, S.A. faces a cash crunch and struggles to pay bondholders, it negotiated financial help from its Russian counterpart to complete its nearly $3 billion in debt payments in April, company sources told Reuters earlier this year.
Russia is a close political ally of Venezuela’s leaders. Rosneft Chief Executive Igor Sechin said in June his company, the world’s top listed oil firm by output, would continue to work in Venezuela and would never leave the country.
Rosneft had lent PDVSA $4-5 billion before the most recent agreement, according to Reuters calculations.
Venezuelan lawmakers have said that any debt transaction made without approval from the opposition-controlled Congress is considered unlawful.
“All these loans have been extended without the control that the constitution requires. Hence, they are null,” said lawmaker Elias Matta, vice president of the congressional energy and oil commission. A new legislative superbody proposed by President Nicolas Maduro was elected on Sunday in a vote plagued by fraud accusations. The 545-member assembly is expected to hold its first session later on Friday.
In recent months, Russia and Venezuela have refinanced the outstanding debt by sending a larger supply of Venezuelan oil to repay the Rosneft loans.  A “remediation agreement” since May has allowed the Russian firm to receive an extra supply of up to 105,000 bpd of Venezuelan heavy crude, while PDVSA’s US unit Citgo Petroleum has imported less. Rosneft also said in its financial report on Friday that in 2016 it made the equivalent of $1.485 billion in advanced payments to PDVSA.

Short URL : https://goo.gl/Td74uZ
  1. https://goo.gl/7Mfbs5
  • https://goo.gl/7jgHqS
  • https://goo.gl/t8jUEA
  • https://goo.gl/v7UNLf
  • https://goo.gl/SNc3Rm

You can also read ...

Swap operations resumed earlier this month after a seven-year break.
Iran is ready to ramp up oil swap capacity after receiving the...
Iran is pinning hopes on the investment and know-how of foreign oil companies to enhance extraction rates.
The National Iranian Drilling Company has completed drilling...
Chinese Refinery Blaze Extinguished
A fire that broke out on Thursday at state oil major...
Citi Forecasts $40-60 Crude for Next 5 Years
Citibank's commodities research team has tempered its outlook...
Pertamina Reiterates Interest in Khuzestan Oilfields
The chief executive officer of Indonesia's state-owned oil and...
GE to Help Develop Biggest Wind Farm in Australia
GE has announced that it has entered into an agreement with...
Tavanir Urges Prudent Power Consumption
Hardwiring the culture of judicious electricity consumption in...
Major Gas Pipeline Launch in December
The construction of the 6th Iran Gas Trunkline (IGAT-6)–a...

Add new comment

Read our comment policy before posting your viewpoints

Enter the characters shown in the image.