PDV Holding | News Brussels; Chicago; Denver; Doha; Indianapolis; London; Los Angeles; New York The National Assembly of Venezuela refused to support the exchange. PDVSA In his last presidential address, Caldera urged the new incumbent, Carlos Andrés Prez of Accin Democrtica, to nationalize the industry. 1 May 2023. In January 2020, Rosneft Trading S.A. facilitated, on behalf of PdVSA, a shipment of two million barrels of Merey-16 crude oil from Venezuela to West Africa. VENEZUELA - PDVSA - Board Of Directors. - Free Online PDVSA is also developing its large Orinoco oil belt using a new patented production method. Morn manufactures fertilizers as well as several chemicals for the domestic market. 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. You already receive all suggested Justia Opinion Summary Newsletters. As with previous OFAC designations, U.S. sanctions need not be permanent and are intended to change behavior. 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. As the highest governing body of the company, the shareholder meeting is the ultimate authority over the direction and administration of PDVSA. Unlike the 2017 Notes, the 2020 Notes were secured by a pledge of a 50.1% equity interest in CITGO Holding, Inc. (CITGO). The estimated oil in situ is around two trillion barrels. On October 31, 1989, PDVSA acquired 50% of Unocal's downstream assets in the midwestern United States. What do the election results mean for President Nicols Maduro and his grip on the presidency? PDVSA Careers and Employment | Indeed.com 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. Webad-hoc board of directors of the state-owned oil company Petrleos de Venezuela, S.A. (PDVSA). 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. In the context of Vladimir Putin's war of aggression against Ukraine, it bears recalling that GPB, under its different guises, is a Treasury sanctioned entity since 2014. pdvsa | LinkedIn As President of PDV Holding, Inc., Samuel Wilhelm is an experienced global oil and gas business Exeario Boscn. The Ceuta field produces 100,000 barrels per day and is expected to reach 200,000 barrels per day in 1993. Before Trump administrations' sanctions, PDVSA was Nynas'majority shareholder with a stake of over 50%. The application of choice-of-law rules can turn a winning case into a losing case (and vice versa). WebThe new members of the board of directors are: 1. All of the above was,and continues to be, ignored by Swedish and American authorities. A completely rigged reorganisation process followed, whereby representatives of GPB Global Resources BV (Alejandro Betancourt, Francisco Convit, Boris Ivanov, Vladimir Anisimov)not only illegally appointed legal counsel on PDVSA's behalf, but managed to get preferential treatment among creditors. 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. Venezuelas Guaido To Appoint Luisa Palacios As Citgo Head 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. Guaids newly appointed then directorsreconstituted the boards of directors of the nominal defendants in this action three Delaware entities Initial exports started at 500,000 tons but are expected to reach 6.5 million tons by 1995. 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. See here for a complete list of exchanges and delays. . features Q&A with leaders in politics, economics, and finance every business day. Ronald Pantin Whether the Notes were validly issued depends, in turn, on whether the court applies New York law or Venezuelan law. Samuel Wilhelm Belloso, the son of a former PDVSA executive, and Elio Tortolero Arvalo are joining the Citgo Holding board, replacing Jorda and COO Rincon. Since the aggregate value of the 2020 Notes is far greater than $250,000, and since the 2020 Notes have no relation to personal, family or household services, it may seem that the court should simply apply New York law and call it a day. St. James Press, 1991. Suite800 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. 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. These legislative objections notwithstanding, PDVSA followed through with the exchange. 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. Jimnez v. Palacios, C.A. No. 2019-0490-KSJM | Casetext Search Copyright (c) 2022 Company-Histories.com. 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. Libertador con calle El Empalme Complejo MinPetrleo - PDVSA, La Campia, Caracas - Venezuela. With the stakes in mind, let us now turn to the applicable choice-of-law rules. Caracas.-Petrleos de Venezuela, S.A.(PDVSA) announces the appointment of two new members to the Board of Directors of the Company, by decree N 2183 of the Constitutional President of the Bolivarian Republic of Venezuela Nicols Maduro, published in Official Gazette N 40826 of January 12, 2016, in accordance with the existing legal Guaid has already presented some ideas about his economic stabilization plan, which proposed anchoring the bolvar currency with respect to the U.S. dollar. As a result, thousands of workers have abandoned their work for PDVSA, especially after PDVSA was put under military control. 2008-20 on September 12, 2006, except for budget approval, Management Report, and any other decisions related to the indebtedness of the corporation, all of which have to be ratified by the Board of Directors to be legally valid. Further steps toward nationalization were taken through a series of laws covering the natural gas industry, the domestic petroleum products market, and the merchant marine. PDVSA Websovereign. 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 1990 Propernyn became the sole owner of CITGO. 4. PDVSA SERVICES | LinkedIn // Photo: @jguaido via Twitter. Webpdvsa | 2,571 followers on LinkedIn. Definitions.net. 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. The case of Nynas qualifies as one of the most brazen corporate raids seen in Venezuelan owned assets. Finally, we can read about how these great companies came about with Company Histories.. 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. 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. Javier Linares, member of the board of directors of a subsidiary of the company Treasury Targets Russian Oil Brokerage Firm for Supporting This system refers to an agreement where by concurrent owners bear all expenses equally. Petrleos de Venezuela S.A. (PDVSA) is wholly owned by the Venezuelan state and is the holding company for the national petroleum industry. Horacio Medina, former executive of PDVSA 2. It passed two resolutions one in May 2016 and one in September 2016 challenging the power of the executive branch to proceed with the transaction and expressly rejecting the pledge of CITGO assets in the 2020 Notes. WebBoard of Directors Samuel Wilhelm Belloso. governs . 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. 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. It held that the 2020 Notes were valid and enforceable and that the defendant trustee was entitled to judgment in the amount of $1.68 billion. What about Nynsstiftelsen's 35%? 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. Citgo operating chief Edgar Rincon also stepped down from the board of Citgo Holding, according to a statement by the Guaido-led assembly. 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. As Maduro continues to resist pressure to resign, sanctions will increasingly restrict his access to cash and hinder his ability to move petroleum. The opposition has moved to appoint a new board of directors for Citgo. 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 On December 22, 2017, the President of the Bolivarian Republic of Venezuela, Nicols Maduro Moros, replaced the vice president of Trade and Supply and the vice president of Gas of Petrleos de Venezuela S.A. (PDVSA) by decree N 3219, published in the Extraordinary Official Gazette of the Bolivarian Republic of Venezuela N 6351. Gas reserves in the country are estimated at 93 trillion cubic feet of gas. How come it no longer appoints representatives to Nynas' Board? Contacting Justia or any attorney through this site, via web form, email, or otherwise, does not create an attorney-client relationship. 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. It has just under 800,000 barrels per day of refining capacity and leases a 300,000-barrels-per-day refinery in Curacao in the Dutch Antilles. Treasury sanctions on PDVSA caused a great deal of disruption, which pushed Nynas to the brink of bankruptcy. On March 21, 2023, by decree No. It has activities Our Standards: The Thomson Reuters Trust Principles. The Executive Committee is the administrative body of governance immediately below the Board of Directors of PDVSA. PDVSA products from the installations of the Isla refinery have been confiscated. 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. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. All rights reserved. . The new members of the board of directors are: 1. This was the result of increased exploration activity and the addition of 26 billion barrels from the Orinoco oil belt. The 2020 Notes contain New York choice-of-law clauses. 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. The district courts analysis of this issue has attracted support from some commentators and criticism from others. This is the billion-dollar choice-of-law question. Section 5-1401 states that it shall not apply to any contract to the extent provided to the contrary in . 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. Finally, I discuss the choice-of-law question that lies at the heart of the case. Rosneft Trading S.A. is a subsidiary of the Russian state-controlled global energy giant Rosneft Oil Company. On October 13, 2022, the U.S. Court of Appeals for the Second Circuit declined to provide a definitive answer as to the interpretive question discussed above. 4.138 and No. 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. Additional reserves from the Orinoco oil belt have also contributed to the company's reserves. WebPDVSA is listed in the World's largest and most authoritative dictionary database of abbreviations and acronyms PDVSA - What does PDVSA stand for? Exeario Boscn is a If New York law applies, then the notes will almost certainly be deemed valid and the noteholders can seize the pledged collateral. 13850, as amended, for operating in the oil sector of the Venezuelan economy. . PDVSA's oil would be marketed through the major international oil companies Exxon, Shell, and Gulf, thus guaranteeing the company a stable market share. In the meantime, please feel free to mention this case the next time a student or a colleague questions the importance of choice-of-law rules. The Human Consequences of Economic Sanctions New PDVSA Board of Directors installed and sworn in PDVSA.COM / Tuesday, 10 January 2023 COMPARTIR: ACCESOS RPIDOS Subsidiaries PDVSA Radio Revista There will be additional updates and commentary on Petrleos de Venezuela S.A. v. MUFG Union Bank, N.A. Under the principle of Constitutional supremacy, applicable within Venezuela and also in the US, that should have been noted by the 2nd Circuit, the 2020 Notes would need to be *independently* valid under both Venezuelan constitutional law and corporate law to be enforceable in Venezuela and abroad. 4.789, published in Official Gazette No. plagiarising this site's content without attribution, eraseinformation about their criminal activities, subordinated hybrid instruments (treated as equity), Spain's tax authority after Alejandro Betancourt. F: +1-202-822-9553. Billions of dollars were riding on the answer. Delaware Court of Chancery 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. Maduro's regime is insisting in the oil industry's de-facto privatization, which is aggravating its collapse. Further, the court wrote that the district court would not have jurisdiction to conduct the requested inquiry on remand. Without Assembly approval, the 2020 Notes could even be deemed as legally non-existent under Venezuelan law and, as such, they could not have any effect inside or outside Venezuela, because the choice of law clause electing New York law as applicable lacked the Assembly approval for it to begin its effectiveness in the first place. It sought a declaration that the entire bond transaction is void and unenforceable because it was never approved by the National Assembly. The National Assembly statement did not provide a reason for the moves, which come after several previous management changes at the company. Nynas got rid of information of its Board of Directors altogether from its website. Web. 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. It also sought a declaration that the creditors were prohibited from executing on the CITGO collateral. The Second Circuit was called upon to decide whether to apply the law of New York or the law of Venezuela to determine the validity of certain notes issued by a state-owned oil company in Venezuela. It is understood to encompass the many reasons why a contract may not be enforceable as a matter of contract law. 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. 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. Wilhelm Belloso and Andrs Arvelo Guerrero also joined the PDV Holding ad-hoc board that oversees Citgo. The U.S. government will not roll back its sanctions as long as Nicols Maduro is in power. In addition, the law established that companies would have to deposit 10% of their assets with the government to ensure that all such assets would be properly maintained by the companies until complete reversion took place. All rights reserved. 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. Heifred Jhoselin Segovia Marrero, vice president of finance. The opposition has moved to appoint a new board of directors for Citgo. New PDVSA Board of Directors installed and sworn in These rules matter. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. The United States is determined to prevent the looting of Venezuelas oil assets by the corrupt Maduro regime.. The changes were first made by an ad-hoc board of directors for PDVSA, and later authorized by the National Assembly. Chief Executive Carlos Jorda was replaced at the boards of Citgo Petroleum and parent company Citgo Holding. PDVSA's last representative was Oswaldo Perez (Vice President Finance atPDVSA). "Citgo continues working to improve profitability, control expenses and reduce costs in order to make the company an even better financial partner to our stakeholders and enable us to pay dividends to our shareholder as soon as we are financially and legally able to do so," the statement added. The new PDVSA includes: Pedro Rafael Tellechea Ruz, president. 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 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. In 1959 the national government decided to grant no further concessions, thus ending a system that dated back to the previous century. 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.. 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. Accordingly, if he does not step down, investors with defaulted bonds will possibly need OFACs authorization to enter into a restructuring agreement with the Venezuelan government or to pursue U.S. legal actions stemming from such bonds. The court began its analysis by observing that the strongest argument in support of a broad interpretation is based on plain language. Websubsidiaries of PDVSA: PDV Holding, CITGO Holding, and CITGO Petroleum (the CITGO Entities). Willkie Secures Resounding Delaware Supreme Court Victory 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.