October 14, 2010 at 2:37 pm #2501
PDVSA to Sell German Refinery Stake to Russian Company, Hugo Chavez Says
By Charlie Devereux and Daniel Cancel – Oct 14, 2010
Petroleos de Venezuela SA, the state-owned oil company, agreed to sell its stake in a German refinery to a Russian company, President Hugo Chavez said, without naming the potential buyer or the refinery.
“This is a good deal for us and Russia is very interested in the stake for geopolitical purposes,” Chavez said today on state television after arriving in Russia for an official visit. “This liberates us from an asset that we don’t need and will allow us to invest in other areas.”
OAO Rosneft, Russia’s largest oil producer and refiner, was in talks with PDVSA to buy its 50 percent stake in the Gelsenkirchen, Germany-based Ruhr Oel refinery, Peter O’Brien, the Russian oil producer’s vice president for strategy, said on Sept. 8 in Moscow. BP Plc holds the remaining 50 percent of the refinery with the capacity to produce 266,000 barrels a day.
A Rosneft spokesman in Moscow, who isn’t authorized to speak publicly, declined to comment when contacted by Bloomberg News. Chavez said that PDVSA is still negotiating the price for the refinery stake. “We can’t say how much yet because it’s still being discussed,” Chavez said. “There’s a haggling war but the price will be fair for both of us.”
To contact the reporter on this story: Charlie Devereux in Caracas at email@example.com; Daniel Cancel in Caracas at firstname.lastname@example.org. To contact the editor responsible for this story: Dale Crofts at email@example.com
October 14, 2010 at 2:38 pm #5472
Here is update on PDVSA selling its JV 50% in German BP Gelsenkirchen coking refinery (~33MBD coker with capcity of 475 Kmtpy green petcoke where ~1/3 as fuel & 2/3 as Anode petcoke with some anode calcined at refinery ~120-150 Kmtpy).
Earlier this year BP signed an agreement with KBR to sell its Hydrocracker/Combi-Cracker VCC technology globally in Jan 2010. BP gained the technology when it acquired Veba who had a 3.5MBD commercial pilot plant which was built at Gelsenkrichen by Veba in 1980’s. Veba formed the JV with PDVSA in 1983.
October 16, 2010 at 4:38 pm #5468
15 October 2010 Last updated at 09:52 ET
Russia and Venezuela sign nuclear power and oil deals
Several deals were signed in the presence of Presidents Chavez and Medvedev
Russia is to build a nuclear power plant in Venezuela as part of a series of energy deals between the nations. Russia will build two 1,200 megawatt nuclear reactors at the Venezuelan plant, said the ITAR-Tass news agency.
Meanwhile Rosneft, Russia’s state oil giant, will buy a 50% stake in German refinery firm Ruhr Oel from Venezuelan state-owned company PDVSA. The agreement, worth $1.6bn (1bn), was signed at the Kremlin during Venezuelan President Hugo Chavez’s visit.
However the cost of the nuclear deal was not immediately revealed. “It could be in 10 years, it could be earlier,” said Sergei Kirienko, head of the Russian state nuclear power corporation Rosatom. “Right now we have no practical activity in building nuclear power stations. “However, under the agreement signed today, that possibility has now in principle appeared.”
In addition to the nuclear and Rosneft deals, a shareholder in energy firm TNK-BP said that the company, which is owned by BP and Russian billionaires, would buy three of BP’s assets in Venezuela by the end of the year.
Russia’s energy ministry and Venezuela’s oil ministry signed an agreement in Moscow to support the deal. TNK-BP shareholder, billionaire German Khan told journalists: “We will buy 16.7% of Petromanagas, 40% of Petroperija and 26.6% of Bouqeron.”
He did not say how much TNK-BP would pay for the stakes.European assets
While Rosneft will become an owner of a 50% stake in Germany’s Ruhr Oel, BP owns the other 50%. Ruhr Oel holds stakes in four German petrochemical and refinery plants.
Rosneft said in a statement that the plants’ capacity is 23.2 million tonnes per year, or about 20% of Germany’s refining capacity. The Russian firm’s president, Eduard Khudainatov, said: “As a result of this acquisition, 18% of Rosneft’s refining capacity will be located in the heart of industrialised Europe.
“This transaction is consistent with our strategy to expand our presence
October 16, 2010 at 4:39 pm #5467
Here are more details around the Rosneft purchase of PDVSA 50% German Refinery stakes. Russian-BP Partner (TNK-BP) will also purchase parts of 3 PDVSA assets: Petromanagas ~17%, Petroperija `40% and Bouqueron ~27%.
And PDVSA / Venezuela gets nuclear power plant sometime in future (having paranoid anti-US Chavez get Nuclear capability has rank alongside fear Iran getting Nuclear capabilities- since both are oil rich countries with little driving force in this direction).
Russians win no matter what with gain of ~20% Refining capacity located in heart Industrialised Europe and financial powerhouse Germany. This also continues their strategic shift of Cracking Refining capacity out Europe and into growing Coking Refinery capacity of Russia/CIS.
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