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In order to pay its overdue dividends to ONGC Videsh Ltd, Venezuelan state-owned PDVSA has shipped a $35 million crude cargo. This is the partial payment to the firm. This payment is in accordance with the deal signed by PDVSA and ONGC Videsh in 2016. If sources were to be believed, PDVSA did not transfer any money in over a year because of the economic breakdown in Venezuela.
Supermajor, ConocoPhillips’ long-drawn legal battle with Venezuela has finally started to bore fruits. The US oil firm yesterday informed about receiving an initial payment of $345 million, which came in the form of “cash and commodities” from Venezuela’s PDVSA. ConocoPhillips crushed profit expectations for the third quarter, aided by PDVSA’s payment.
Venezuela has not yet paid its past dues of USD 449 million, strategizing accordingly, ONGC Videsh Ltd (OVL) has overruled Latin American nation’s proposal for additional stake in an oilfield. OVL already holds 40% stakes in San Cristobal field and was offered 9% more by PDVSA last year. On November 4, 2016, two agreements were signed between OVL and PDVSA for the revival of the San Cristobal.
According to the sources, after the tanker collision incident on the weekend, Jose port of Venezuela is partially operating at present. This has restrained upgraded crude export ability of PDVSA and also affected the import diluents capacity. Present fiscal year has seen PDVSA struggling to provide exports on time due to the US sanctions, sinking oil output, and creditors trying to take hold of overseas assets through legal action.
A decade-old dispute between PDVSA and America’s ConocoPhillips is moving towards an important decision. ConocoPhillips has agreed to recover £1.5 billion with the Venezuelan oil major. Agreeing and recognizing the judgment of international arbitration panel, PDVSA will pay £390m in 90 days and the rest will be paid in the period of four years. American oil major will suspend its legal actions against PDVSA in the Dutch Antilles in return.
The Venezuelan Finance Ministry yesterday said that the China Development Bank will finance over $250 million to boost Venezuela’s oil production in the Orinoco Belt. Venezuela’s oil sector has been sending distress signal, and the Chinese investment might have showed up in time. A legal order, issued in May and granted to ConocoPhillips, froze the assets of PDVSA in Caribbean ports and terminals.
Petroleos De Venezuela S.A. (PDVSA) has stopped payments to ONGC Videsh Ltd (OVL), the foreign arm of ONGC. OVL is yet to receive an amount of $450m, as dividend from San Cristobal field. Three instalments totalling $88m were received but the subsequent payments stopped. The company is now requesting PDVSA to allot oil in lieu of the dues.