As a result, in 1971 the Hydrocarbons Reversion Law was enacted, aimed at ensuring the continuity and efficiency of the country's oil activities after the concessions expired in 1983. Then congress chief Juan Guaido appointed new boards and won U.S. court recognition of their authority over the refining subsidiary. Webad-hoc board of directors of the state-owned oil company Petrleos de Venezuela, S.A. (PDVSA). PDVSA's oil would be marketed through the major international oil companies Exxon, Shell, and Gulf, thus guaranteeing the company a stable market share. 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, Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. 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 opposition has moved to appoint a new board of directors for Citgo. Orimulsion is a rival product to coal and according to PDVSA is not intended to compete with heavy fuel oil. Privacy Policy. Creditors holding roughly $2.8 billion in 2017 Notes decided to participate and exchanged their notes for 2020 Notes. It has activities in exploration, production, refining and exporting oil as well as exploration and production of natural gas. PDVSA operates under broad WebThe Chancery Court denied the Maduro directors claims and ruled that under the political question doctrine and act of state doctrine, U.S. courts must accept as binding the U.S. Presidents recognition of the Guaid government and assume the validity of the Guaid governments appointments to the PDVSA Board. The National Assembly took the position that these notes were contracts of public interest which required legislative approval pursuant to Article 150 of the Venezuelan Constitution. Principal Subsidiaries: Corpoven; Maraven; Lagoven; Interven; Refineria Isla (Curaç); PDV (U.S.A.); PDV (Europe) (U.K.); Intevep; Bariven; Pequiven; Palmaven; Carbozulia. . Websovereign. Separate from todays action, OFAC previously identified Rosneft Oil Company as operating in the energy sector of the Russian Federation pursuant to Ukraine-/Russia-related Executive Order 13662, and both Rosneft Oil Company and Rosneft Trading S.A. were already subject to certain restrictions under Ukraine-/Russia-related Directives 2 and 4. There was progress in the sense that the board of directors was obliged to first meet with President Chvez before making decisions, Paravisini Garca said. Guaido would also appoint Angel Olmeta, Luis Urdaneta and Edgar Rincon to Citgos board of directors, sources said. Autol - Calahorra Motorway (LR-282) Km 7,Calahorra (La Rioja) - info@torremaciel.com - +34 941163021 - +34 941163493. 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. GL 8F extends the validity period of certain maintenance activities involving Petrleos de Venezuela S.A. (PdVSA) until December 1, 2020, but also narrows the scope of the prior license and provides a new authorization for wind-down transactions and activities. 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. On March 21, 2023, by decree No. PDVSA's last representative was Oswaldo Perez (Vice President Finance at PDVSA). If the 2020 Notes were validly issued, they are binding on PDVSA, and the CITGO assets may be seized by the noteholders in the event of default. The risk remains high as long as there are two parallel governments. Treasury sanctions forced PDVSA to shed 35% of the 50%+ it had into a nondescript vehicle (Nynsstiftelsenor NyColleagues AB), controlled by Nynas' management. After nationalization, PDVSA began to diversify its exports, seeking to increase its supply of white products--gasoline and jet fuel--which are traditionally more in demand and afford a higher profit margin. Source: International Directory of Company Histories, Vol. 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 PEDRO RAFAEL TELLECHEA RUIZ PEOPLES MINISTER OF PETROLEUM. 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. With further upgrading and conversion facilities, the refineries were able to use a higher proportion of heavier crudes, which represented the major volume of reserves in the country. Venezuela's move toward controlling its oil industry took a significant step in 1943, when the new hydrocarbon law integrated all oil legislation. 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). Under this narrower interpretation, it is irrelevant whether the National Assembly approved the 2020 Bonds because all of the corporate formalities needed to validly issue a securityapproval by the board of directors, approval by the shareholders, etc.appear to have been followed. 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. U.S.-based executives of Citgo may recognize the new board and cooperate in an effort to avoid a PDVSA-bond default. WebThe new members of the board of directors are: 1. 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. Alessandro Bazzoni reportedly behind United Petroleo: where does that leave Luis Giusti? Further, the court wrote that the district court would not have jurisdiction to conduct the requested inquiry on remand. 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. Some lawmakers have sought to require Citgo pay dividends to holding companies Citgo Holding and PDV Holding, according to people familiar with the matter. Before Trump administrations' sanctions, PDVSA was Nynas'majority shareholder with a stake of over 50%. Citgo's current administration has never been opposed to paying dividends to its shareholder, the company said in a statement. Thousands of Venezuelans took to the streets across the country on Feb. 12 calling for international humanitarian aid to be allowed entry. We are leaving to the Expo in CHINA, so it's time to pack the bags to bring a little bit of La Rioja and our house on the other side of the world. 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. 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. Justia makes no guarantees or warranties that the annotations are accurate or reflect the current state of law, and no annotation is intended to be, nor should it be construed as, legal advice. 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%. WebCORPORATE GOVERNANCE PEDRO RAFAEL TELLECHEA RUIZ. In its first year of operation, PDVSA received net income of US$825.6 million, increasing to US$1.88 billion in 1977, but with the decline in oil prices the company's net income also suffered, falling to US$731 million in 1988. 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. 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. In 1990 Propernyn became the sole owner of CITGO. Section 5-1401 states that it shall not apply to any contract to the extent provided to the contrary in . As the highest governing body of the company, the shareholder meeting is the ultimate authority over the direction and administration of PDVSA. Nynas got rid of information of its Board of Directors altogether from its website. On the one hand, the term may be interpreted broadly to refer to both the corporate law of Venezuela and to Venezuelan law more broadly. Brussels; Chicago; Denver; Doha; Indianapolis; London; Los Angeles; New York Under the Hydrocarbon Law, every agreement for PDVSA to cede exploration and production rights is illegal and unconstitutional. As with previous OFAC designations, U.S. sanctions need not be permanent and are intended to change behavior. The Eleventh Circuit affirmed the district courts ruling denying intervenors motion to reopen and substitute on behalf of Petrleos de Venezuela in their claims alleging conspiracy, antitrust, cybercrime, and fraud claims against various individuals and entities. The district court cannot question the validity of then-President Guaids appointment of an alternative board of directors. In his last presidential address, Caldera urged the new incumbent, Carlos Andrés Prez of Accin Democrtica, to nationalize the industry. Locations. Exclusive news, data and analytics for financial market professionals, Reporting by Luc Cohen and Marianna Parraga A holding company, PDVSA, was established to coordinate, supervise, control, and plan the activities of its subsidiaries made up of the 14 former operating companies. This appeal involves a nonjusticiable political question: who has the authority to litigate in the name of the Venezuelan state oil company, Petrleos de Venezuela, S.A. New PDVSA Board of Directors installed and sworn in PDVSA.COM / Tuesday, 10 January 2023 COMPARTIR: ACCESOS RPIDOS Subsidiaries PDVSA Radio Revista Finally, I discuss the choice-of-law question that lies at the heart of the case. With this goal in mind, between 1978 and 1987, the company decided to upgrade its refineries in Amuay, Cardn, and El Palito to reduce the proportion of residual fuels obtained in the refining process and increase the proportion of naphtha, gasoline and distillates. Citgo operating chief Edgar Rincon also stepped down from the board of Citgo Holding, according to a statement by the Guaido-led assembly. What would happen to Venezuelas defaulted bonds if President Nicols Maduro steps down, and what would happen to them if he remains in power? 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. It is also worth repeating that Francisco Convit, a GPB associate, is a Justice Department fugitive. On August 29, 1975, the Organic Law Reserving to the State the Industry and Commerce of Hydrocarbons was enacted, allowing the government to take full control of the oil industry on January 1, 1976. Note added28/06/2021: impostors are using this site's former editor's full name, and a fake email addresses (alek.boyd.arregui@gmail.com)to send copyright infringement claims / take down requests to web hosting companies (exhibit Hostgator). The court observed that if the term validity were given a broad scope, it would swallow whole any choice of law analysis involving the formation of a contract for securities. The court cited state legislative history indicating that the term validity in Article 8 referred merely to whether a security ha[d] been issued pursuant to appropriate corporate or similar action. The court also quoted the authors of a leading treatise on Article 8 as saying that: Obviously, the concept of invalidity as used in this section must have a narrower scope than one might encounter in other legal contexts, e.g., in a dispute about whether the obligation represented by the security is enforceable or legal, valid, and binding.. Registered in the Canton of Geneva, Switzerland as a trading company in January 2011, Rosneft Trading S.A. was created to assist Rosneft Oil Company in carrying out its foreign projects. To all readers, do the right thing, the honest thing: support independent investigative journalism, help us expose rampant corruption. It owns 12 refineries with an overall processing capacity of 1.75 million barrels per day, of which 945,000 million barrels per day are processed in Venezuela and the rest in the United States, Europe, and the Dutch Antilles. 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. 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. Disclaimer: Justia Annotations is a forum for attorneys to summarize, comment on, and analyze case law published on our site. WebPetrleos de Venezuela (PDVSA) comprised of the President, two Vice-Presidents, Our current directors are: Certain information on our current directors is set forth below: Nicolas Maduro sold Nynas to mistery buyer? These discoveries have added between 10 and 12 billion barrels of light and medium grade crude oil to a reserve base which was disproportionately biased towards heavier oils. 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. In the fall of 2019, PdVSA planned oil shipments with Rosneft Trading S.A. involving 55 million barrels of crude oil liftings from September to December 2019. Michelle DiGruttolo, senior managing director at Ankura, and Jay Squiers, managing director in the firms energy restructuring office:The latest sanctions will ensure that trading on both Venezuelan government-issued bonds and PDVSA bonds remains at a virtual standstill. On March 1, 1978, PDVSA assumed full responsibility for the country's petrochemical industry when the government transferred the ownership of Petroqumica de Venezuela SA (Pequiven) to PDVSA. Get instant definitions for any word that hits you anywhere on the web. Whether the Notes were validly issued depends, in turn, on whether the court applies New York law or Venezuelan law. F: +1-202-822-9553. The Executive Committee is the administrative body of governance immediately below the Board of Directors of PDVSA. Pequiven has two petrochemical complexes: Morn in Carabobo state and El Tablazo in Zulia state. From a European perspective, this case would seem to be, at first sight, about the interpretation of the scope of an overriding mandatory provision, which should obviously trump any choice of law clause concluded by the parties. Its last reported accounts, as per website, are for 2020. The discussion highlighted the Ministers position on the best way for the international community to handle the crisis in Venezuela and how to confront infrastructural-based corruption throughout Latin America. The main powers of the Shareholder Meeting include: learn about, and to approve or not approve the annual report of the Board of Directors, as well as the financial statements and consolidated budgets of investments and operations of PDVSA and subsidiary companies or entities, define the functions and duties of the members of the Board of Directors, issue regulations on internal organization, learn about the report of the commercial commissioner and appoint the deputy. The nationalization of the industry required the creation of a functional structure that would allow normal operation to continue within the new legal scheme. Copyright 2018, INFODIO. The Inter-American Dialogue hosted a private roundtable event featuring Ricardo Luna, the Peruvian Minister of Foreign Relations. During 1989, PDVSA produced around 1.6 million barrels of oil and condensate per day. WebBoard of Directors Samuel Wilhelm Belloso. With the stakes in mind, let us now turn to the applicable choice-of-law rules. The key figures in PDVSA, i.e. These decisions are made at regular or special meetings. The original 14 operating subsidiaries were integrated in 1977 into four major companies, Lagoven, Maraven, Meneven and Corpoven. The court first quoted the following language from the Prefatory Note to Article 8: [Article 8] deals with the mechanisms by which interests in securities are transferred, and the rights and duties of those who are involved in the transfer process. The Venezuelan PDVSA The government of Hugo Chvez (1999-2013) tried to recover PDVSA in a process of confronting the coup attempts carried out, for example, with the oil strike in 2003. Chief Executive Carlos Jorda was replaced at the boards of Citgo Petroleum and parent company Citgo Holding. How does PDVSA exercise its rights at Nynas? This was the result of increased exploration activity and the addition of 26 billion barrels from the Orinoco oil belt. 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. During the administration of Rafael Caldera the initiative in oil matters shifted from the executive to congress, which increased corporation taxes on oil business and allowed the government unilaterally to determine reference prices for crude oil. 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. Unlike the 2017 Notes, the 2020 Notes were secured by a pledge of a 50.1% equity interest in CITGO Holding, Inc. (CITGO). What about Nynsstiftelsen's 35%? The PDVSA board formally approved the exchange of notes in 2016. Commercial marketing of the fuel has started at a modest level of 20,000 barrels per day, but could reach 600,000 barrels per day by the middle of the decade. Factions within the National Assembly have been fighting for influence at Citgo since last year. The new board of directors filed a lawsuit in the Southern District of New York against the trustee and the collateral agent for the 2020 Notes. 2703, published in the Extraordinary Official Gazette of the Bolivarian Republic of Venezuela No.6284. Finally, we can read about how these great companies came about with Company Histories.. The attempt is yet another effort paid by corrupt thugs to eraseinformation about their criminal activities. The 2020 Notes contain New York choice-of-law clauses. The Jumi Application is Unpublished or Removed, International Alcoholic Beverages Expo, Guizhou, CHINA. Subsidiary Propernyn PDVSA bought 50% of CITGO from the Southland Corporation.
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