CARACAS/HOUSTON--Venezuela's state-run PDVSA is siphoning oil from its cash-paying joint ventures with foreign firms to feed its domestic refineries, two sources close to the matter told Reuters, at a time when late debt payments have triggered defaults.
PDVSA asked its Petropiar joint venture with Chevron Corp to turn over as much as 45 percent of the oil it planned to export in November with no immediate reimbursement, one of the sources said this month. PDVSA did not respond to a request for comment. Chevron declined to comment.
The joint ventures export upgraded crude to buyers around the globe and the diversion cuts into the main source of the government's revenue. One likely reason for the shift: to deal with intermittent fuel shortages because of the poor condition of its refineries, which in some cases are working at a third of capacity.
The lack of these exports add to the nation's cash crunch as President Nicolas Maduro tries to restructure some $60 billion in debt to bondholders. Some of Venezuela's oil exports are under oil-for-loan agreements with Russia and China. Investors say the country has defaulted on bonds issued by PDVSA and the government and two ratings agencies declared a selective default.
In addition to the Petropiar joint venture with Chevron, PDVSA has this year taken oil for its domestic refineries from its Petrocedeno project with Total SA and Statoil. PDVSA did not respond to a request for comment. Its joint venture partners declined to comment.
"PDVSA started requesting some cargoes from Petrocedeno for the Paraguana Refining Center (CRP). Now it is asking Petropiar to relinquish almost half of its crude production," the source said.
From August through October, PDVSA took at least 1 million barrels per month of heavy crude from Petropiar after acquiring Zuata Sweet crude from Petrocedeno earlier this year. It is seeking 2 million barrels, or 45 percent of Petropiar's total production for November, the source added.
