After reviewing the various arguments for and against a broad interpretation of validity, the court certified the question to the New York Court of Appeals. STANDS4 LLC, 2023. . Genesis Sabrina Ron Solano, vice Exeario Boscn is a The exploration effort will be concentrated on the Furrial-Musipn geological trend in Monagas where 51 wells are to be drilled and on the North-Central section of Lake Maracaibo where 43 wells are to be drilled. 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. These appointments are relevant as the ad-hoc board of directors controls the most important assets of the oil company abroad, including the subsidiary Citgo Petroleum Corp., located in the United States. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. The estimated oil in situ is around two trillion barrels. The nationalization of the industry required the creation of a functional structure that would allow normal operation to continue within the new legal scheme. In October 2018, Maduro decreed that the following individuals would comprise the board of PDVSA: Manuel Salvador Quevedo Fernndez; Miguel Jos Quintana Castro; Rodolfo Enrique Jimnez Jimnez; Jos Alejandro Rojas Reyes; Nemrod Antonio Contreras Mejas; Marcos Alejandro Rojas Marchena; Fernando Manuel de Quintal Rodrguez; Yurbis Javier Linares, member of the board of directors of a subsidiary of the company 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. 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. Autol - Calahorra Motorway (LR-282) Km 7,Calahorra (La Rioja) - info@torremaciel.com - +34 941163021 - +34 941163493. In 1959 the national government decided to grant no further concessions, thus ending a system that dated back to the previous century. In my view, the 2020 Notes were invalid ab-initio due to the lack of Assembly approval as required by Article 150, irrespective of corporate law compliance. Get instant definitions for any word that hits you anywhere on the web. Citgo's current administration has never been opposed to paying dividends to its shareholder, the company said in a statement. Copyright 2018, INFODIO. So, under the political-question doctrine, it was powerless to grant the Maduro entitys motion to substitute the entity as the real party in interest in contravention of the position taken by the United States Department of State. The Ceuta field produces 100,000 barrels per day and is expected to reach 200,000 barrels per day in 1993. WebOn Monday October 8th, Petrleos de Venezuela (PDVSA) Board of Directors held a work meeting in order to review financial matters accountability from January to September 2018. As a result, the regulations issued by OFAC have nearly paralyzed trading of Venezuelan bonds. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. The board of directors reports to an assembly constituted by the minister of energy and mines, who presides over it, and to those members of the Executive Cabinet designated by the president of the republic. WebCORPORATE GOVERNANCE PEDRO RAFAEL TELLECHEA RUIZ. 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). Identifying information on the entity and individual designated today. The prices of Venezuelan government bonds rallied after National Assembly President Juan Guaid declared himself the countrys legitimate president and won official recognition from numerous countries, including the United States. On February 29, 2020, according to decrees No. A recent decision in the U.S. Court of Appeals for the Second Circuit, Petrleos de Venezuela S.A. v. MUFG Union Bank, N.A., is a case in point. 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. 4.789, published in Official Gazette No. Oil reserves in Venezuela are the largest in the world and the state-owned PDVSA provides the government of Venezuela with substantial funding resources. 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). [This post is cross-posted at Transnational Litigation Blog.]. The core activities of Rosneft Trading S.A. are marketing and distribution, including the trading, processing, and transport of raw materials, in particular unrefined petroleum and petroleum products. The court affirmed because the district court could not grant the motion without addressing a nonjusticiable political question. 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. The United States was PDVSA's main market, accounting for 54% or 891,000 barrels per day of total exports in 1988, with Europe in second place with 205,000 barrels per day or 12.4%. 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. This term validity is not generally understood to refer solely to corporate formalities. Olmeta was vice president of Citgo and Luis Urdaneta was a vice president of PDVSA in the 1990s, while Rincon is a specialist in financial evaluation and commercial negotiation. El ataque a la Asamblea Nacional en Venezuela, tensiones diplomticas con Corea del Norte, y la reunin del G20 en Hamburgo temas de discusin en este programa de Club de Prensa. Some lawmakers have sought to require Citgo pay dividends to holding companies Citgo Holding and PDV Holding, according to people familiar with the matter. The United States is determined to prevent the looting of Venezuelas oil assets by the corrupt Maduro regime.. 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. IsNynsstiftelsen's stake tied to PDVSA? CITGO is owned by PDVSA through a series of subsidiaries and is considered by many to be the crown jewel of Venezuelas strategic assets abroad. Vladimir Anisimov has been for decades associated / employed by Nikolay Patrushev, while Boris Ivanov's diplomatic past and associations with Gazprom are just the right credentials necessary to enter Treasury's sanctions list. WebPetrleos de Venezuela, S.A. (PDVSA, Spanish pronunciation: [peeesa]) (English: Petroleum of Venezuela) is the Venezuelan state-owned oil and natural gas company. Frontera Energy Corporation Executive Director 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. Irrespective of who triumphs, we anticipate a lengthy restructuring battle with all parties taking a haircut., Javier Coronado, associate attorney at Diaz, Reus & Targ:Based on the notion that international pressure would soon lead to a new government with which creditors could negotiate payment, investors were seeing Venezuelan bonds as a good deal. 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. Tuesday's shakeup introduced five new appointees tied to different opposition parties, some of them the sons of former PDVSA executives. The President of Venezuela has the power to appoint the board of directors of PDVSA. Since the trend toward heavy oil has been reversed with the discoveries of light oil in Monagas and Apure, PDVSA has continued to concentrate its exploration efforts on finding light and medium oil, and between 1988 and 1993 has planned to drill 112 exploration wells to add a possible 9.4 billion barrels of reserves to the existing 58 billion barrels. Mr. Rubn Figuera, first President of PetroSucre (January - December 2008), CVP's General Manager of Offshore Joint Ventures (March 2007 November 2009), and Internal Director of CVP's Board of Directors (May 2014 August 2017). Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. How come it no longer appoints representatives to Nynas' Board? 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. 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. It has activities A default on those bonds would place the refiners equity ownership at the center of foreclosure battles involving bondholders, both Venezuelan presidents and Rosneft, which holds half of the Citgo-collateralized PDVSA bonds. 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. The Service Contracts system was introduced in 1967 through a partial reform of the Hydrocarbons Law, allowing the nation to negotiate with foreign companies under more advantageous conditions. The U.S. government will not roll back its sanctions as long as Nicols Maduro is in power. Against this backdrop, and considering that the U.S. government could issue additional sanctions targeting Venezuela in the coming days, it is certainly growing riskier to hold Venezuelan debt., Jose Pineda, senior consultant at DevTech Systems and adjunct professor at Sauder University of British Columbia:First, Juan Guaid did not proclaim himself president. . Oil has been known and used in Venezuela since seepages were found on the shores of Lake Maracaibo during the colonial period, which ended in 1910. On the contrary, Guaid mainly brings upside risk to the Venezuelan debt, even after an orderly debt restructuring process that guarantees payments to debt holders and access to financial markets for the Venezuelan reconstruction. For tax purposes, PDVSA is treated by the Venezuelan government like any other business entity. A fusion of tradition, modernity and surroundings. 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. PDVSA decided to secure long-term outlets for its crude oil by increasing its presence in foreign downstream markets, mainly in the United States and Europe. 4.139, published in the Extraordinary Official Gazette; 6,512, the president of the Bolivarian Republic of Venezuela, Nicols Maduro, appointed four new vice-presidents in the core areas of Petrleos de Venezuela, S.A. (PDVSA), as well as the new president of the Venezuelan Petroleum Corporation (CVP), a subsidiary that manages PDVSA's interests in joint exploration and production companies with national and foreign private oil companies. It is also worth repeating that Francisco Convit, a GPB associate, is a Justice Department fugitive. // Photo: @jguaido via Twitter. WebSearch By Name. Nynas got rid of information of its Board of Directors altogether from its website. 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. What would happen to Venezuelas defaulted bonds if President Nicols Maduro steps down, and what would happen to them if he remains in power? Interesting topic. On January 09, 2023, according to decree N 4.765 published in the Extraordinary Official Gazette N 6.731, citizen PEDRO RAFAEL TELLECHEA RUIZ is appointed as president of the Oil State Company, Petrleos de Venezuela, S.A. (PDVSA), and its Board of Directors. CVP was to operate in competition with foreign concessionaires in the country and was to be the official instrument of the country's petroleum policy. The treated heavy oil is known as orimulsion, with recoverable reserves estimated at 267 billion barrels, equivalent on a calorific basis to all of South Africa's coal reserves and to all of the United States's crude reserves. One of PDVSA's most important international marketing strategies has been its joint venture participation in foreign manufacturing and marketing companies which has accelerated significantly since 1986, when oil prices fell below $10 per barrel and it was difficult to place oil. 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. The most important domestic refineries in terms of capacity are Amuay with 630,000 barrels per day and Cardn with 350,000 barrels per day. Venezuela, unlike the Middle East or Iran, devised a concessionary system whereby most oil companies could operate, regardless of nationality, and production costs were much lower than in the United States, which accounted for 70% of total world oil production at the time. U.S.-based executives of Citgo may recognize the new board and cooperate in an effort to avoid a PDVSA-bond default. Nevertheless, they are vitally important. The United States has made it clear that we will consider lifting sanctions for those who take concrete, meaningful, and verifiable actions to support democratic order in Venezuela. The district court cannot question the validity of then-President Guaids appointment of an alternative board of directors. As a result, thousands of workers have abandoned their work for PDVSA, especially after PDVSA was put under military control. WebBoard of Directors Samuel Wilhelm Belloso. But the United States Department of State has concluded that Maduro is not Venezuelas legitimate political leader. The first formal concession for its exploitation, however, was not awarded until August 24, 1865, when Camilo Ferrand procured the rights from the president of Zulia state. Whether the Notes were validly issued depends, in turn, on whether the court applies New York law or Venezuelan law. features Q&A with leaders in politics, economics, and finance every business day. Finally, we can read about how these great companies came about with Company Histories.. The numerical value of pdvsa in Chaldean Numerology is: 4, The numerical value of pdvsa in Pythagorean Numerology is: 8. Editing by Marguerita Choy, Oil prices drop as US rate hike fears, weak China data offset supply cuts, KKR to invest $250 million more in India's Serentica Renewables, Japan's JERA sees more LNG going to Asia as domestic demand shrinks, Santos' sale of Papua New Guinea LNG stake to state-owned Kumul delayed to August, Indian cough syrup: mystery middleman may be new clue, Red flags galore: Fed officials cited SVB 31 times, Pentagon awards $7.8 billion F-35 contract to Lockheed Martin, Fed points finger at Trump-era rollback for SVB demise, Kotak Mahindra Bank beats expectations with 26% net profit rise in January-March quarter. Prior to nationalization, Venezuela's refineries had been geared to use low gravity oil to produce heavy fuel oil for export to its traditional market, the northeast United States. Then congress If you believe there is an interest from the government to maintain PDVSA as a working entity, then this should be particularly beneficial for PDVSA bonds, but all money is fungible, so you never know if they redirect this money to other purposes. 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, The 2020 Notes contain New York choice-of-law clauses. The 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. WebPresident of the Board of Directors Contact 2 Contact 3 See All Contacts Dynamic search and list-building capabilities Real-time trigger alerts Comprehensive company profiles Valuable research and technology reports Get a D&B Hoovers Free Trial Financial Data PDVSA is also developing its large Orinoco oil belt using a new patented production method. On March 21, 2023, by decree No. Since its founding on 1 January 1976 with the nationalization of the Venezuelan oil industry, PDVSA has dominated the oil industry of Venezuela, the world's fifth largest oil exporter. After Guaid assumed office, his government appointed a new board of directors to governPetrleos de Venezuela, S.A. (PDVSA), Venezuelas state - owned oil company. Choice-of-law rules can be complex, confusing, and difficult to apply. 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. 1 May 2023. 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. The rest was owned by Finland's Neste group. 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. 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. U.S.-based executives of Citgo may recognize the new board and cooperate in an effort to avoid a PDVSA-bond default. To all readers, do the right thing, the honest thing: support independent investigative journalism, help us expose rampant corruption. The company pays royalties, and income taxes are based on the export values of the oil and products sold. Section 8-110 directs courts to apply the local law of the issuers jurisdictionhere, Venezuelato resolve issues relating to the validity of the security. The billion-dollar question is what exactly the word validity means in this context. Privacy Policy. Jorda and Rincon remain in their executive roles, a Citgo spokeswoman said. With the stakes in mind, let us now turn to the applicable choice-of-law rules. It has the same powers and responsibilities as the Board of Directors, under Board of Directors resolution No. WebThe new members of the board of directors are: 1. Current gas production is between 3.6 million and 3.8 million cubic feet of gas per day of which one-third is sold locally, about one-third reinjected into the reservoirs, 21% used by the oil industry and 5% flared. The underlying action, brought by a litigation trust on behalf of Petrleos de Venezuela, alleged conspiracy, antitrust, cybercrime, and fraud claims against various individuals and entities. 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. Incompetence within the company has led to serious inefficiencies and accidents as well as endemic corruption. I then provide an overview of the relevant New York choice-of-law rules. 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. Petrleos de Venezuela, S.A. (PDVSA), is a national company strongly committed to the Venezuelan people. The plaintiffs appealed. Get free summaries of new Eleventh Circuit US Court of Appeals opinions delivered to your inbox! If Citgo declares a dividend, under direction of the newly appointed directors, they could direct the dividend to fund the required payment on the PDVSA bonds to avoid default. If Maduro stays in power, the Venezuelan economy will continue its meltdown, and markets will not get any credible promise of payments. The Inter-American Dialogue engages our network of global leaders to foster democratic governance, prosperity, and social equity in Latin America and the Caribbean. 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. In 1876, a report submitted to the president of Zulia on the petroleum and asphalt deposits in the Maracaibo basin indicated the existence of an oil seep near Tarra, producing 5,760 gallons a day. Under this interpretation, the 2020 Notes may not be validly issued because they were never approved by the National Assembly as required under Article 150.
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