Venezuela troubles (currency, economy and potential FAFO)

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June 1 (Reuters) - Trinidad and Tobago is requesting the U.S. government amend the terms of a license authorizing the joint development of a promising offshore gas field with Venezuela, the Caribbean nation's energy minister said on Thursday.

The United States in January issued a 2-year authorization for Trinidad and a group of companies including Venezuelan state-run oil firm PDVSA and Anglo-Dutch Shell (SHEL.L) to revive a dormant project that could help Trinidad boost gas processing and exports to its neighbors.

 
But we can't drill.

Follow the money. Corn Pop is so far gone he's insensible, he doesn't know what he's being made to sign; but the puppetmasters are surely getting a cut of the action.
 
CARACAS (Reuters) -Iran and Venezuela want to increase bilateral trade to $20 billion, up from $3 billion, Iranian President Ebrahim Raisi said on Monday during a visit to Caracas.

During the visit the two countries signed a memorandum of understanding to expand cooperation in petrochemicals with a view to carrying out joint projects, building on their already-close cooperation in oil.

 
Will Venezuela drag Iran down or will Iran invade Venezuela?
 
Venezuela's oil industry is a total mess. It's filled with political appointments at top posts. Competency is not rewarded - political connections are.
 

Venezuela pursues debt settlement with Crystallex, Conoco, bondholders​

HOUSTON, June 30 (Reuters) - Negotiators representing Venezuela have held settlement talks with bondholders and creditors owed billions of dollars from defaults and expropriation claims, the head of a board supervising the country's foreign oil assets told Reuters.

The talks have gained urgency as a federal court judge is to decide next month whether to kick off an auction of shares that could lead to the break-up of Citgo Petroleum, Venezuela's most prominent overseas asset. The U.S. has for years shielded Citgo from seizure under a license that will expire next month if not renewed.

Some $2.6 billion in court-approved claims from Crystallex International, ConocoPhillips, Siemens Energy and Red Tree Investments could be applied to auction proceeds.

More:

 
LONDON, June 30 (Reuters) - The Venezuelan Central Bank (BCV) board controlled by the government of President Nicolas Maduro on Friday lost its latest appeal over $1.95 billion of the country's gold reserves held in the Bank of England's underground vaults.


Sal's take................

 
Venezuela's oil industry is a total mess. It's filled with political appointments at top posts. Competency is not rewarded - political connections are.



Throw in being gay or transgender and it sounds a lot like our government now.


I give us five or six years before we start looking just like Venezuela. We're making all the right moves to get there.



government15.jpg
 
July 19 (Reuters) - The U.S. on Wednesday approved a three-month extension to a license protecting Citgo Petroleum from creditors seeking to seize the oil refiner's assets.

The document comes as a negotiation team representing Venezuela progresses in talks with bondholders and creditors with arbitration awards from expropriation claims, a move to avoid a breakup of Venezuela's most important foreign asset.

Creditors have flocked to U.S. courts to press claims on over $20 billion, almost double the value of Citgo Petroleum, which operates an 807,000-barrel-per-day oil refining network in the United States.

 
This one's a little different. Interesting story.........didn't want to start a new thread.

Inside prison run by gang with swimming pool, mini-zoo and even its own nightclub​

By day, Venezuelans could play baseball, visit zoos with horses, pigs and flamingos, and saunter round market streets selling food and wares as their children played in parks.

By night, they could drink beer, place bets and go nightclubbing. But this was not a holiday resort or town. It was one of Venezuela’s most notorious prisons controlled by the powerful Tren de Aragua gang.

It was this compound where 11,000 security officers took ‘total control’ this week by clearing the prison, where 300 families lived, with weapons and armoured vehicles.

The prison was used as the headquarters of the Tren de Aragua, a gang running a criminal enterprise across several Latin American countries including Colombia, Chile and Peru.

More:

 
  • The "dark fleet" employs various techniques to hide the identity of each tanker, ensuring the transport of U.S.-sanctioned oil remains untracked.
  • Over half of PDVSA's own tankers are inoperable, leading Venezuela to lean on Iran's fleet for crucial oil exports, primarily to Asia.
  • Despite sanctions, Venezuela's oil exports have grown, with China as a major recipient of the oil which is often branded as Malaysian oil.
 
WASHINGTON, Oct 18 (Reuters) – U.S. President Joe Biden’s administration is easing sanctions on Venezuela’s oil and gas sector almost immediately in response to a 2024 election deal reached between the Venezuelan government and the country’s opposition, a senior U.S. State Department official told Reuters on Wednesday.

 
...
The U.S. moves followed an agreement reached in Barbados on Tuesday between Maduro’s government and the U.S.-backed opposition on electoral guarantees for an internationally monitored vote to be held in the second half of 2024.

But the deal did not remove bans on opposition candidates the government had barred from public office and made no mention of freeing political prisoners, falling short of what the U.S. wanted to see.

The U.S. welcomes the election agreement but considers it “a partial agreement toward an electoral roadmap,” the official said, adding the U.S. was ready to take more steps around Venezuela’s crucial energy sector. “Today, tomorrow, it’s going to happen quickly.”

The official warned, however, that U.S. decisions on relaxed sanctions would depend on Maduro complying with the latest agreement and working toward free and fair elections.

“We’re willing to take specific actions, but if they fail to live up to their commitments, we can certainly withdraw those positive incentives,” the official said.
...

I'm guessing their election will be another shit show and the sanctions will be reapplied shortly thereafter.
 
 
 
But we can't drill.

Follow the money. Corn Pop is so far gone he's insensible, he doesn't know what he's being made to sign; but the puppetmasters are surely getting a cut of the action.
They're getting damned obvious about it.
 
CARACAS, Nov 27 (Reuters) - The Venezuela Creditors Committee (VCC) on Monday said a court in New York last week validated an agreement that extended the legal term on unpaid Venezuelan bonds until December 2028.

Venezuelan opposition lawmakers in August approved extending the validity of Venezuelan bonds and those of the country's state-owned oil company PDVSA for five more years to reduce risks of more lawsuits and to renegotiate with bondholders.

 
So there seems to be some trouble brewing in Venezuela:

Tensions are running high between Georgetown and Caracas, which has organized a December 3 poll to ask Venezuelans to consider annexing the Guyana-administered region of Essequibo, which makes up two-thirds of the tiny country.

Both nations claim the 160,000-square-kilometer (62,000-square-mile) region, in a dispute that has intensified since ExxonMobil discovered oil there in 2015.

Another major discovery in Essequibo in October added further to Guyana's reserves, making them greater than those of Kuwait or the United Arab Emirates.

"We're interested in maintaining peace in our country and in our borders, but we're going to be working with our allies to ensure that we plan for all eventualities," Guyanese Vice President Bharrat Jagdeo said Thursday -- including welcoming the establishment of foreign military bases.

"We were never interested in military bases, but we have to protect our national interest," he said, adding that defense cooperation was being pursued "with a number of countries."

Two teams from the US Department of Defense will visit Guyana next week, Jagdeo added.
...






Venezuela massing troops near the border. They might fuck around and if they do, I expect they are going to find out.
 


F80Nk2qWcAg1ODe
 
That would drag the US into another war using Colombia as a proxy.
 
Brazil "has intensified defensive actions" along its northern border as it monitors a territorial dispute between its neighbors, Guyana and Venezuela, the country's defense ministry said on Wednesday.
...

 
Venezuela said Friday it would press ahead with a weekend referendum over the fate of an oil-rich region claimed by itself and Guyana even as the UN's top court urged restraint in the worsening row.
...
In The Hague, the International Court of Justice (ICJ) ordered Venezuela to "refrain from taking any action which would modify the situation that currently prevails" in the Essequibo region, which Guyana has administered for over 100 years.
...
Sunday's referendum will ask citizens whether or not Venezuela should reject the 1899 arbitration decision as well as the ICJ's jurisdiction in the matter.

They will also be asked whether or not Venezuelan citizenship should be granted to the people -- currently Guyanese -- of a new "Guyana Esequiba State."
...


Looking more and more like this is going to go hot.
 
Oil is very much like gold in the eyes of nations. It will cause war. Again.
 
CARACAS/GEORGETOWN, Dec 3 (Reuters) - Venezuelans will vote on Sunday in a referendum backed by President Nicolas Maduro's government over a potentially oil-rich territory that is the subject of a long-running border dispute with Guyana.

The five-question referendum includes a question rejecting International Court of Justice (ICJ) jurisdiction to decide to which country the territory around the Esequibo river belongs. Some political and security analysts have called the referendum a show of strength by Maduro and a test of support for his government ahead of a planned 2024 presidential election.

 
I betcha both sides have military weapons made in the USA.
 
Sounds like it is new access to an existing field that Venezula has been exploiting for decades exclusively.
 
Sounds like it is new access to an existing field that Venezula has been exploiting for decades exclusively.

No.
  1. The Essequibo region has been controlled/occupied by Guyana for over 100 years
  2. Venezuela was party to an arbitration agreement in 1899 ceding the region to Guyana
  3. ExxonMobile discovered huge oil deposits in the region in 2015
  4. Guyana was just starting to make commercial agreements with oil companies for rights to the oil a few months ago
  5. Venezuela suddenly decides the 100+ year old arbitration is not valid and they need to assert ownership of the region
 
Venezuelan voters are being asked to provide a "Yes" or "No" answer to five questions.

The first two basically ask whether Venezuelans support the country's claim over the Essequibo region based on the Venezuelan arguments - the alleged invalidity of the 1899 arbitral award and the validity of the 1966 Geneva Agreement.

The third question asks voters if they agree with the Maduro government's refusal to accept that the ICJ has jurisdiction in the case.

This is a controversial question, since many Venezuelan opposition leaders and observers say snubbing the ICJ undermines Venezuela's position.

Question four asks if Venezuelans "agree to oppose by all means in accordance with the law" Guyana's "unilateral" use of the sea waters off Essequibo - a reference to Guyana issuing oil licencing for this offshore area.

Critics have questioned the use of "by all means" in this question, wondering if this could include military force.

The fifth question asks for approval for "the creation of the Guayana Esequiba state" and its "incorporation into the map of Venezuelan territory", language particularly objected to by Guyana which says this amounts to the effective "annexation" of territory it currently administers.
...


That report has a good summary of the situation.
 
Venezuelans on Sunday approved a referendum called by the government of President Nicolás Maduro to claim sovereignty over an oil- and mineral-rich area of neighboring Guyana it argues was stolen when the border was drawn more than a century ago.

It remains unclear how Maduro will enforce the results of the vote. But Guyana considers the referendum a step toward annexation, and the vote has its residents on edge.

The National Electoral Council claimed to have counted more than 10.5 million votes even though few voters could be seen at polling sites throughout the voting period for the five-question referendum. The council, however, did not explain whether the number of votes was equivalent to each voter or if it was the sum of each individual answer.
...
“It has been a total success for our country, for our democracy,” Maduro told supporters gathered in Caracas, the capital, after results were announced. He claimed the referendum had “very important level of participation.”

Yet long lines typical of electoral events did not form outside voting centers in Caracas throughout Sunday, even after the country’s top electoral authority, Elvis Amoroso, announced the 12-hour voting period would be extended by two hours.

If the participation figure offered by Amoroso refers to voters, it would mean more people voted in the referendum than they did for Hugo Chávez, Maduro’s mentor and predecessor, when he was re-elected in the 2012 presidential contest. But if it is equivalent to each individual answer marked by voters, turnout could drop to as low as 2.1 million voters.
...
The International Court of Justice on Friday ordered Venezuela not to take any action that would alter Guyana’s control over Essequibo, but the judges did not specifically ban officials from carrying out Sunday’s five-question referendum. Guyana had asked the court to order Venezuela to halt parts of the vote.

Although the practical and legal implications of the referendum remain unclear, in comments explaining Friday’s verdict, international court president Joan E. Donoghue said statements from Venezuela’s government suggest it “is taking steps with a view toward acquiring control over and administering the territory in dispute.”

“Furthermore, Venezuelan military officials announced that Venezuela is taking concrete measures to build an airstrip to serve as a ‘logistical support point for the integral development of the Essequibo,’” she said.
...

 
In democratic vote, Russians approve of reclaiming Alaska

Palestinians vote to reclaim ..........

Chinese vote .....

what could possibly go wrong ?
 
Venezuela already has huge oil reserves, but cannot exploit them efficiently because of politics. Adding more reserves will do no good, especially sparking a regional war.
 
Last edited:
HOUSTON, Dec 4 (Reuters) - Venezuela's oil exports remained almost unchanged in November at 651,000 barrels per day (bpd) even as an easing of U.S. sanctions is now allowing sales to trading houses, according to shipping and tanker tracking data.

Washington in October temporarily lifted oil sanctions on the country as a way to encourage a presidential election in 2024, which prompted spot sales of Venezuelan crude and fuel oil to traders mostly bound for China.

 
Venezuelan President Nicolás Maduro is plunging ahead with its plans to take over Essequibo, the oil-rich region controlled by neighbouring Guyana.

He has ordered the state oil company to issue extraction licences there and proposed the National Assembly pass a bill making the area part of Venezuela.

Guyana has put its defence forces on full alert in response.
...

https://www.msn.com/en-us/news/world/venezuela-moves-to-claim-guyana-controlled-region/ar-AA1l5NdI

The population of Guyana is reported to be 800,000. The population of the disputed Essequibo region is reported to be around 130,000. That's a small city (like Pearland, TX) around where I live. I can't imagine their defense forces as being very formidable.
 
DYODD with this.

Following Sunday’s referendum, Venezuela’s Maduro government de facto “annexes” the oil-rich Essequibo region. Guyana calls for help from friends, including US Southern Command. Military exercises are already under way.

Three and a half weeks ago, we warned that the next major geopolitical flash point in this year of living dangerously could be in Washington’s “backyard” (or as the Biden Administration likes to call it, front yard). Sad to say, it looks like we were right. Like most geopolitical flash points, the region affected, Essequibo (or Guayana Esequiba), boasts a wealth of energy and mineral resources. In 2015, a consortium of energy firms led by Exxon Mobil discovered huge deposits of oil in the region’s disputed waters — and what’s more of the sweet crude variety that is easiest to refine, commanding the highest price on the global market.

In doing so, they reignited a diplomatic conflict that has been blowing hot and cold for the best part of the last two centuries. Essequibo has been administered by the former British colony of Guyana, of which it constitutes more than two-thirds of its territory and hosts 125,000 of Guyana’s 800,000 citizens, since 1899, when its frontiers were defined by an arbitration panel in Paris. Venezuela eventually accepted the ruling, albeit grudgingly, until 1949, when one of the US lawyers who had defended its case had a memorandum published posthumously that strongly suggested that the ruling had been rigged in Britain’s favour.

Venezuela Takes a Step Closer to War With US

 
America answers the call?
In collaboration with the Guyana Defence Force (GDF), the U.S. Southern Command (USSOUTHCOM) will conduct flight operations within Guyana on December 7. This exercise builds upon routine engagement and operations to enhance security partnership between the United States and Guyana, and to strengthen regional cooperation.

In addition to this exercise, USSOUTHCOM will continue its collaboration with the GDF in the areas of disaster preparedness, aerial and maritime security, and countering transnational criminal organizations.

The U.S. will continue its commitment as Guyana’s trusted security partner and promoting regional cooperation and interoperability.


also:
The United Nations Security Council is to meet behind closed doors Friday on the fast-escalating row between South American neighbors Venezuela and Guyana over a disputed oil-rich region.

The Council called the meeting at the request of Guyana, which claimed action taken by Caracas with regards to the Essequibo region "threatens international peace and security."
...


UN security council isn't going to do shit with China and Russia in Venezuela's corner.
 
We could get a few guys from the VFW and Elks Club and take on Venezuela. Would be a good opportunity for the USA to clean up and unite South America with contributing forces from Colombia, Brazil and Argentina.

The whole thing smells like China and Russia instigating it. Don'tvforget all the recent border jumpers that cancause havoc in the US, but they can be shot as spies.
 
... The whole thing smells like China and Russia instigating it. ...
From what I have read, it seems like Maduro is trying to whip up some nationalist fever ahead of elections to distract people from their economic woes. That said, I'm sure he received encouragement from those quarters. It'll be telling to see what China and Russia have to say via their spots on the UN security council...
 
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