Home › Forums › Refining Community › Refinery News › Update – Chavez End Asphalt Sales / Seize Companies › RE: Update – Chavez End Asphalt Sales / Seize Companies
Stupid actions do not require a belief in logic chain for them to occur (unfortunately). You want proof otherwise then you go chase it down for change.
Need to remember we ARE talking about someone that goes out of his way to insult his largest customer (US), sell some of its former crude supply for less money to China (~cost Venezuela $3billion for extra freight, delayed payment of 30 days vs 16 day trip to China, and limited upside based on low complexity level of average refinery).
Also Chavez is all about making the Venezuelan poor see him as champion and blaming the poor roads on US taking the country’s asphalt lets him escape telling them it is because the Government transportation system is courpt and incapable of doing its job (especially at government values they pay for asphalt vs market price).
However I wouldn’t rule out that it may be bluster to open the contract value NuStar got from Citgo purchase (might have been at PDVSA internal transfer price asphalt and just realized US market has had 3 major price hikes in last 3 years). Since the NuStar asphalt refineries are US assets he has already sold – no chance he can take them over, but he can always refuse honor contracts as he has been. Beyond understanding why Venezuela is not being held accountable by tough action from US and our companies are left to flounder around in international courts to get justice.