Venezuela Wants To Overhaul State Oil Firm PDVSA

(Oilprice.com, Tsvetana Paraskova, 7.Sep.2018) — Venezuela has set up a commission that will be working to reshuffle and reorganize its state oil firm PDVSA in the next few months, according to the country’s Official Gazette on Thursday, in what would be the latest Venezuelan attempt to show that it is trying to revitalize its dying oil industry.

According to OPEC’s secondary sources, Venezuela’s oil production in July dropped to below the 1.3-million-bpd mark—at 1.278 million bpd, plunging 47,700 bpd from June. This compares with an average of 2.154 million bpd in 2016, and an average of 1.911 million bpd in 2017.

Some analysts expect Venezuela’s production to fall to below 1 million bpd by the end of this year.

Venezuela has been claiming lately that it plans to raise its oil production.

Last week, PDVSA said that it signed a US$430 million joint service agreement with seven companies that would help it increase its crude oil production by 641,000 barrels per day.

On top of the incessant production slump, PDVSA has seen difficulties in exporting its oil cargoes after a partial closure at the Jose port at the end of August delayed shipments.

A week before that, ConocoPhillips reached a settlement with PDVSA to recover the full US$2-billion amount that an international court awarded it earlier this year for the expropriation of its oil assets in Venezuela a decade ago. PDVSA agreed to settle the dispute with Conoco and possibly save some assets in the Caribbean from seizures, as the U.S. oil firm said that it would be suspending the legal actions to enforce the award.

PDVSA has 90 days from August 20 to make the first US$500 million payment of the award to Conoco. On September 5, Conoco’s chief executive Ryan Lance said that the U.S. company was still awaiting the payment, but expected Venezuela to honor the settlement agreement. If payments aren’t made, however, ConocoPhillips would resume its legal enforcement actions, Lance noted.

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Frontera Receives Global Compact Awards from UN

(Frontera Energy Corporation, 7.Sep.2018) — Frontera Energy Corporation has been named a Canadian Sustainable Development Goals award winner for the second consecutive year by the Global Compact Network Canada, the Canadian network of the United Nations Global Compact.

Frontera was awarded the SDG Leadership Award in the large organizations category, through public voting, for its outstanding efforts in adopting and implementing the United Nations Sustainable Development Goals in its engagement with indigenous communities in Colombia and Peru.

The public also voted Frontera as the winner of the ‘Partnership Award’ for its excellent work in engaging stakeholders through ongoing partnership and advancement towards the Sustainable Development Goals.

“We are proud of our commitments and continuing a legacy of sustainable growth for our stakeholders. We congratulate the United Nations Global Compact Network Canada on their five-year anniversary and the large impact they have made on promoting Sustainable Development Goals in Canada,” said Frontera Chief Executive Officer Richard Herbert.

These awards intend to encourage all Canadian organizations to embed the 17 Sustainable Development Goals within their organizations and highlights the progress that both private and public sectors have made towards solving pressing environmental, social and economic challenges. Since its inception in 2013, the Canadian Chapter of the United Nations Global Compact has been dedicated to assisting over 150 Canadian organizations with the advancement of the United Nations Global Compact’s 10 Principles and 17 Sustainable Development Goals.

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Guyana’s Jan Mangal Warns of Cash Payouts

(Stabroek News, 7.Sep.2018) — Former presidential advisor Jan Mangal has warned that while cash payouts from oil revenue may have an important role to play in the future, at this point it could be a distraction from the larger goal of clawing back wealth.

His reference in a Facebook post today to  clawing back of wealth will be seen as a reference to the widely criticised terms of the Production Sharing Agreement between Guyana and ExxonMobil subsidiary, Esso Exploration and Production Guyana Limited.

Potential cash payouts have taken centre stage following a recent proposal by Professor Clive Thomas at a forum in Buxton.

Mangal, who has become a vocal critic of aspects of the Exxon deal and the handling of the oil and gas sector here warned that oil companies have various stages in how to make countries forfeit their wealth.

He said:

“1. The oil company and their agents will first influence the politicians. They do this very well. They do it all the time all around the world (in the rich countries as well). This has already happened in Guyana.

“2. Then they will influence the private sector by giving them some contracts. This has already happened in Guyana, judging by the words/ actions of the private sector, judging by how some prominent Guyanese have suddenly gone quiet or changed their tune (lawyers, business people, board members, etc). CSR, grants and donations also are used by the oil companies to influence people and institutions. Please take the money, but it will not help Guyana if we take the money then go quiet and stop visibly speaking out for our country.

“3. Then the most challenging is the influence of the people. But this is doable in Guyana due to its small population, its divisions, its corruption, and its flawed “winner takes all” system of governance. One way to influence the people is by direct cash disbursements to the people. Give people a couple hundred US dollars a year and they may no longer care if the royalty is 2% or 15%. Hence, we have to be careful. Direct cash disbursements have an important role to play in the future (as some have been discussing recently), but not now as an election variable, and not now as a distraction for the people. We need to focus on the more important prize, which is clawing back more of our wealth for ourselves, and also securing that wealth. The wealth will come for everyone if we work hard, do not be intimidated, and do not repeat the mistakes from other countries.

“The odds are stacked against Guyana, but Guyana can succeed”.

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YPF Board Names María Luján Bianchi As Chief Compliance Officer

(YPF, 7.Sep.2018) — The Board of Directors YPF S.A. announced, at its meeting held on September 6, 2018, approval of appointment of María Luján Bianchi as Chief Compliance Officer. Luján will report to the Audit Committee.

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