ConocoPhillips Preparing to Seize Venezuelan (Syria In America’s Backyard) Oil Assets Will Cause Civil War
Source: Miami Herald
‘No one wants to be last in line.’ Seizure of Venezuela oil assets may start wave.
BY ANTONIO MARIA DELGADO • May 11, 2018
A warning sign stands at the entrance of the PDVSA/BOPEC Brasil Terminal in Rincon Bonaire on the Caribbean Netherlands island of Bonaire, Monday, May 7, 2018, where Venezuela refines and stores its heavy crude. U.S. oil giant ConocoPhillips is pressing for control of Venezuela’s key offshore operations in the Caribbean, seeking to recoup $2 billion from a decade-old dispute. Stephan Kogelman AP
The decision by ConocoPhillips to seize the Caribbean assets of PDVSA, Venezuela’s state-owned oil company, has established a dangerous legal precedent that could swamp the South American country’s already impoverished oil monopoly under a wave of similar claims and cut deeply into its ability to operate, experts said.
The decision, which came amid the accelerating deterioration of Petroleos de Venezuela S.A.’s production capacity, could lead creditors to try to seize other Venezuelan assets abroad, including oil exports, to recover the more than $40 billion they claim they are owed.
“Creditors are now saying to themselves, ‘Look, we now have confirmation that you can go out and embargo PDVSA,’ and many of them are going to rush into court to ask for their own seizures,” said Antonio De La Cruz, executive director of Inter American Trends in Washington, D.C.
“We are at the start of a snowball” rolling downhill, added Russ Dallen, managing partner of Caracas Capital Markets, an investment bank in Miami. “Now that people have started to file lawsuits, we are going to see a run because no one wants to be the last in line.”
The U.S. oil company was able to obtain injunctions freezing the assets after winning its case against PDVSA at the World Bank’s International Center for Settlement of Investment Disputes (ICSID), which ruled that the state-run company had to pay ConocoPhillips $2 billion for the government’s 2007 nationalization of its projects in Venezuela. The country has been suffering under shortages of food and medicine as the economy has continued to spiral.
Until recently, many creditors had been turning a blind eye to the fact that Venezuela was technically in default on its debts because the regime of President Nicolás Maduro was hinting that he meant to pay, even if late.
But the game changed with ConocoPhillips.
“Because it will be so difficult for all these people to be paid what they are owed — especially because there are so many creditors, a huge debt and few assets available — I fear this is going to set off a domino effect, a great nervousness in the markets, and that overnight we will see a significant increase in this type of legal action,” said Diego Moya-Ocampo, London-based Americas analyst for IHS Markit.
The Canadian mining company Rusoro filed a lawsuit this week in Houston seeking to seize the assets of Citgo, the U.S. branch of PDVSA, which, if approved, would be a devastating blow to Venezuela’s oil future, Dallen said.
The key factor in that case will be a ruling on whether Citgo and PDVSA are legally the same as the Venezuelan government, which would open the doors to lawsuits by holders of expired Venezuelan government bonds.
“I think Rusoro probably decided to act when it saw how ConocoPhillips jumped in line, ahead of other creditors, and started to embargo assets in the Caribbean, taking control of [oil] terminals and storage facilities,” said Dallen.
Rusoro is seeking $1.3 billion as payment for the expropriation of its gold mining operations in Venezuela.
In another hint of what may be coming, a former PDVSA supplier, White Beech SNC LLC, filed a lawsuit Monday in the U.S. District Court for the Southern District of New York against PDVSA for the company’s failure to meet payment obligations on a PDVSA $25 million bond issue.
Court documents allege the state oil monopoly defaulted on the 6.5 percent bond on Jan. 4, when it failed to pay $3.5 million due for interest and capital amortization.
The possibility that PDVSA could soon face a wave of creditors filing seizure lawsuits around the world could significantly impact the company’s ability to export crude.
Venezuela, where oil production already has fallen from 3.4 million to 1.4 million barrels per day since the late Hugo Chávez was first elected president in 1999, could see its sales plummet by up to 700,000 barrels per day if multiple creditors file lawsuits, dealing a powerful blow to the Maduro regime’s revenues, according to experts.
“The situation is rapidly becoming more complicated. It’s getting increasingly difficult,” said Miami oil expert Horacio Medina, explaining the risks that PDVSA could face if creditors start to seize its oil shipments to other countries such as the United States.
Please go to Miami Herald to read the entire article.
**5/12~URGENT BREAKING NEWS!!! EVERYTHING HAS CHANGED IRREVOCABLY NOW!!
5/14~US LED CARIBBEAN INVASION MARCHES ON!BIG OIL DESTROYS CURAÇAO!
Source: Left Hook
Venezuela Stands Firm For Revolution
08/02/2017 | 4 Comments
Sunday night President Nicolas Maduro announced that over 8 million people participated in the election of a new constituent assembly in Venezuela. Despite violent protests launched by the the country’s Rockefeller-beholden oligarchs, cheered on by the US media, the people of Venezuela voted to bolster the Bolivarian Socialist Revolution begun by the late Hugo Chavez.
On October 9, 2012 Venezuelan President Hugo Chavez had been re-elected for the third time in fourteen years, handily defeating conservative oligarch challenger Henrique Capriles with 54% of the vote. The fiery Chavez, who had recently criticized NATO harassment of the Assad government in Syria, was slated to serve another six-year term.
But on March 5, 2013 Chavez died from a rapidly spreading “cancer”, likely administered by agents of the City of London Illuminati banksters. (https://hendersonlefthook.wordpress.com/2014/08/28/did-the-cia-poison-hugo-chavez/)
Chavez’ re-election was remarkable considering that less than two years before the Venezuelan oligarchy and their CIA/Big Oil backers were holding rallies in Caracas dubbed Operation Venezuela. The events, which were well countered by supporters of Chavez, marked the anniversary of the deposing of Marcos Perez Jimenez in Venezuela in 1958.
But as with all recent CIA-sponsored Orange/Velvet/Cedar “revolutions”, the contradiction lies within the history books. Jimenez, you see, was a right-wing dictator, the polar opposite of the socialist Chavez.
In 1914 Royal Dutch/Shell subsidiary Caribbean Petroleum discovered the vast Mena Grande oilfield in Venezuela. Foreign oil companies began flocking to the area. When oil was discovered at Lake Maracaibo in 1922, Venezuelan dictator Juan Vicente Gómez allowed Americans to write Venezuela’s petroleum law.
On November 27, 1948 Venezuela’s first democratically-elected President Romulo Gallegos was overthrown on a coup led by Jimenez cronies. Democracy was not restored until 1958 when Jimenez was overthrown. President Romulo Ernesto Betancourt Bello won the election held later that year. The populist Betancourt had been President from 1945-1948. He had transferred power to the novelist Gallegos shortly before the right-wing coup.
Jimenez privatized Venezuela’s economy while littering Caracas with the skyscrapers of multinational corporations and banks. He was tight with both Venezuela’s richest man Gustavo Cisneros and Creole Petroleum. Cisneros is a Rockefeller lieutenant who sits on the board at Bank of Nova Scotia- one of the Big 5 Canadian banks. It owned the 200 tons of gold recovered from beneath the World Trade Center post-911.
Please go to Left Hook to read the entire article by Dean Henderson.
Ryan Lance – Chairman & CEO, ConocoPhillips
If there was anyone who represents the “deep state” no better, it would be Richard Armitage who is the director of ConocoPhillips:
The Russians shipped 600,000 tons of wheat to Venezuela. The Americans are “shipping pain” until Venezuela is sold out to the IMF.
The reason why the US used sanctions against Venezuela as an economic weapon is because US oil corporations do not want Venezuela to nationalize their oil industry.