Home › Forums › Coking › News: DCU, Upgrader › 3.Upgrader (registered users only) › Fw: PDVSA considers Swap Chalmette in Exxon dispute…..Not good deal › RE: Fw: PDVSA considers Swap Chalmette in Exxon dispute…..Not good deal
PDVSA needs to get some new analysts and Oil Minister if the best they can come up with for the Exxon dispute is to offer a oil liability asset for an oil producing asset! This offer wasn’t acceptable to Exxon (or anyone in their position) at the start of the Chavez Joint Venture (JV) asset theft and it hasn’t improved with age. Any of the US partners can eventually pick up any of the Citgo or PDVSA assets at half the price or less, any time they want – and most don’t want it even then. All the one sided negotiations PDVSA has done of late must have rusted out their trade skills.
PDVSA knows from trying to sell other US Refining assets that the best offer is often less than $0.40 on the $1.00 invested capital for refining assets – a bitter pill they have chosen not to swallow before now. Eventually they will have to absorb that loss, however in this article they hide it behind the JV required permission from Exxon…..as if they honored any other aspect of the contract that wasn’t in their favor.
So what makes any these clowns think they are good enough at negotiations to pass that lemon off as a fair trade to get a court order lifted. Especially since the freeze is already taking a heavy toll on PDVSA cash flow to all Chavez government programs and recent L. America investments.