Venezuela Scrambles to Sell Off Oil Assets and Avoid Default

EspañolIn an effort to handle its overdue debts, Venezuela is all but giving away oil assets.

President Nicolás Maduro is reportedly so desperate to pay the US $3.7 billion in debts that he is selling off the assets to Russia.

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They offered to sell Russia a share of PetroPiar, which is 30-percent owned by Chevron and which PDVSA has a 70-percent stake in. It also expropriated ConocoPhillips’ 40-percent shareholdings, which has not been paid yet.

Likewise, PDVSA offered Rosneft 10 percent of a project developed to extract the extra-heavy oil from the Orinoco Oil Belt.

If the transactions go through, Chevron would be affected negatively, as it would be associating with Rosneft, a company that faces sanctions imposed by the United States.

Venezuela has also reportedly been talking to a Japanese investment bank to try to obtain fresh funds.

Venezuela managed to pay US $725 million in overdue debt last month, but with difficulty, as it came 30 days late.

Source: El Nuevo Herald