A Maduro exit would create uncertainty until the new government decides which bond issuances and other obligations they will honor. 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. The products sold are petrol, aviation fuel, diesel fuel, lubricants, kerosene, and asphalt, with petrol accounting for almost half of total consumption. The key figures in PDVSA, i.e. We don't have any way to get them. 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. STANDS4 LLC, 2023. If Maduro stays in power, the Venezuelan economy will continue its meltdown, and markets will not get any credible promise of payments. PDVSA's oil would be marketed through the major international oil companies Exxon, Shell, and Gulf, thus guaranteeing the company a stable market share. On February 29, 2020, according to decrees No. On November 28, 2017, by decree N 3180, published in Official Gazette N 41288, the President of the Bolivarian Republic of Venezuela, Nicols Maduro, names citizen Al Rodrguez Araque, Honorary President of the State Company Petrleos de Venezuela, S.A., PDVSA. "pdvsa." 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 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. On January 29, 2017, the President of the Bolivarian Republic of Venezuela, Nicols Maduro Moros, appointed the new Board of Directors of Petrleos de Venezuela S.A. (PDVSA) by decree No. Disclaimer: Justia Annotations is a forum for attorneys to summarize, comment on, and analyze case law published on our site. These are critical initial steps for the Guaid administration to restore credibility.. 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. 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. 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. Sign up for our free summaries and get the latest delivered directly to you. "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. Narrows PdVSA-Related General License and Authorizes Thousands of Venezuelans took to the streets across the country on Feb. 12 calling for international humanitarian aid to be allowed entry. Morn manufactures fertilizers as well as several chemicals for the domestic market. PDVSA's proved reserves rose from 18.2 billion barrels in 1976 to 58.35 billion barrels in 1989. It sought a declaration that the entire bond transaction is void and unenforceable because it was never approved by the National Assembly. 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. WebThe members of the Board of Directors of PDVSA are: President: Manuel Quevedo Fernndez Vicepresident of Production and Exploitation: Miguel Quintana Castro, substituting Nelson What would happen to Venezuelas defaulted bonds if President Nicols Maduro steps down, and what would happen to them if he remains in power? Suscrbete a nuestro boletin de noticias. The new government also believed that the oil industry was disinvesting; for instance, the number of exploration wells drilled had declined from 589 in 1958 to 148 in 1973, causing the reserves to production ratio to decline. Then congress If New York law applies, then the notes will almost certainly be deemed valid and the noteholders can seize the pledged collateral. Aside from preferential "subordinated hybrid instruments (treated as equity)"and 49% stake,remaining 35% inNynsstiftelsen and 15% in PDVSA (PDV Europa B.V.), must have gottendiluted somehow: PDVSA no longer has a seat on Nynas' Board. section 1-301 of the Uniform Commercial Code. Section 1-301(c) states that if N.Y Commercial Code Section 8-110 specifies the applicable law, that provision governs and a contrary agreement is effective only to the extent permitted by the law so specified. Section 8-110(a), in turn, states that [t]he local law of the issuers jurisdiction . The first oil company incorporated in the country was the Compaia Nacional Minera Petrlia del Tchira, formed on October 12, 1878. VENEZUELA - PDVSA - Board Of Directors. - Free Online Venezuelan businessman Luis Giusti Lugo, the son of a former PDVSA president, will replace CEO Jorda on the Citgo Petroleum board, while Ernesto Hernndez Bolvar will replace Pablo Prez on the same board, the statement said. 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 National Assembly of Venezuela refused to support the exchange. 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. Horacio Medina, former executive of PDVSA 2. This field covers an area of approximately 42,000 square kilometers and is considered one of the most important untapped reserves of heavy oil in the world. It is also worth repeating that Francisco Convit, a GPB associate, is a Justice Department fugitive. What about Nynsstiftelsen's 35%? The PDVSA board formally approved the exchange of notes in 2016. In his last presidential address, Caldera urged the new incumbent, Carlos Andrés Prez of Accin Democrtica, to nationalize the industry. It is PDVSA that has failed to honor our award by ignoring the judgment of the ICC tribunal and other local court orders. A fusion of tradition, modernity and surroundings. There is, however, another New York choice-of-law rule that may trump Section 5-1401. 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 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. Washington, DC 20005 Contacting Justia or any attorney through this site, via web form, email, or otherwise, does not create an attorney-client relationship. But the United States Department of State has concluded that Maduro is not Venezuelas legitimate political leader. 4. See here for a complete list of exchanges and delays. 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. Petrleos de Venezuela, S.A. Avenida. Este giro en el comportamiento de la actividad econmica fue promovido por un There will be additional updates and commentary on Petrleos de Venezuela S.A. v. MUFG Union Bank, N.A. New PDVSA Board of Directors installed and sworn in Get free summaries of new Eleventh Circuit US Court of Appeals opinions delivered to your inbox! Identifying information on the entity and individual designated today. Javier Linares, member of the board of directors of a subsidiary of the company The plaintiffs appealed. 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 is also developing its large Orinoco oil belt using a new patented production method. Oil reserves in Venezuela are the largest in the world and the state-owned PDVSA provides the government of Venezuela with substantial funding resources. As a result, thousands of workers have abandoned their work for PDVSA, especially after PDVSA was put under military control. Pdvsa is managed by a president and two vice-presidents, each of whom is named to his job for 2 years by the president of Venezuela. In 1990 Propernyn became the sole owner of CITGO. The Eleventh Circuit affirmed the district courts ruling denying intervenors motion to reopen and You're all set! 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. Frontera Energy Corporation Executive Director A federal court sitting in diversity must look to the choice-of-law rules of the state in which it sitshere, New Yorkto decide which jurisdictions law to apply. 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. The risk remains high as long as there are two parallel governments. Nicolas Maduro sold Nynas to mistery buyer? PDVSA 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. 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. These rules matter. Brussels; Chicago; Denver; Doha; Indianapolis; London; Los Angeles; New York With the stakes in mind, let us now turn to the applicable choice-of-law rules. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. 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. After the district court dismissed the action for lack of standing and the Eleventh Circuit affirmed, an entity purporting to speak for Petrleos de Venezuela sought to substitute itself as the real party in interest. Board of Directors; La Junta Directiva; Jobs, Internships, and Fellowships; (PDVSA). 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. Chief Executive Carlos Jorda was replaced at the boards of Citgo Petroleum and parent company Citgo Holding. 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%. WebThe 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. The application of choice-of-law rules can turn a winning case into a losing case (and vice versa). All rights reserved. PDVSA The exchange was also approved by the companys sole shareholder and by the boards of the PDVSAs subsidiaries with oversight and control of CITGO. PDV Holding | News As a result, the regulations issued by OFAC have nearly paralyzed trading of Venezuelan bonds. . 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. 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. WebPDVSA.COM / Saturday, 05 May 2018 Caracas.- On May 3, 2018, Decree N 3398 of the Presidency of the Republic was published in Official Gazette N 41389, by means of which the Board of Directors of Petrleos de Venezuela, S.A. (PDVSA) is named, ratifying Manuel Quevedo as President of PDVSA. Phone: +58(212)7084021 Fax: +58(212)7084460. 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.. https://www.definitions.net/definition/pdvsa. Citgo has lost hundreds of million dollars over six of the last eight quarters amid pandemic-related demand declines and storm shutdowns. 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. Copyright 2018, INFODIO. IsNynsstiftelsen's stake tied to PDVSA? . PDVSA The district courts analysis of this issue has attracted support from some commentators and criticism from others. The nationalization of the industry required the creation of a functional structure that would allow normal operation to continue within the new legal scheme. 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 validity of a security.. The Free Dictionary 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. Interesting topic. 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. 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. Finally, the district court noted the virtual absence of any New York case law supporting the broad interpretation of the validity favored by the plaintiffs. Hernandez Bolvar will fill the seat vacated on that board by Luisa Palacios in October. In September 2019, PdVSA supplied a shipment of one million barrels of Merey-16 to Rosneft Trading S.A., which was loaded on a vessel in Venezuela and destined for Asia. Whether the Notes were validly issued depends, in turn, on whether the court applies New York law or Venezuelan law. Then congress chief Juan Guaido appointed new boards and won U.S. court recognition of their authority over the refining subsidiary. 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. PDVSA also owns minority stakes in two refineries in Sweden, and one in Belgium. His partner Betancourt, is part of several ongoing criminal probes. . A further fundamental step toward achieving full control of the country's oil wealth was taken in April 1960 when the Corporacin Venezolana de Petroleo (CVP), a national oil company, was established to enable the country to acquire greater experience in all areas of the oil industry. 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. St. James Press, 1991. Libertador con calle El Empalme Complejo MinPetrleo - PDVSA, La Campia, Caracas - Venezuela. With this acquisition, PDVSA gained access to a deep conversion refinery near Chicago with an installed capacity of 153,000 barrels per day, as well as distribution and marketing facilities in Illinois, Michigan, Iowa, Ohio, and Wisconsin. WebBoard of Directors Samuel Wilhelm Belloso. 13850, as amended, for operating in the oil sector of the Venezuelan economy. 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. What do the election results mean for President Nicols Maduro and his grip on the presidency? TheLatin America Advisor features Q&A with leaders in politics, economics, and finance every business day. Some lawmakers have sought to require Citgo pay dividends to holding companies Citgo Holding and PDV Holding, according to people familiar with the matter. 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. 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. VENEZUELA PETRLEOS DE VENEZUELA Finally, we can read about how these great companies came about with Company Histories.. 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. I then provide an overview of the relevant New York choice-of-law rules. The upgrading of PDVSA's refineries was two-thirds completed when it was halted in 1986 because of low oil prices. You can explore additional available newsletters here. After Guaid assumed office, his government appointed a new board of directors to governPetrleos de Venezuela, S.A. (PDVSA), Venezuelas state - owned oil company. Heifred Jhoselin Segovia Marrero, vice president of finance. All of the above was,and continues to be, ignored by Swedish and American authorities. The man provided a raw material for the syrups, which are linked to the deaths of more than 70 children in Gambia.