Identifier
Created
Classification
Origin
09CARACAS104
2009-01-28 13:11:00
CONFIDENTIAL
Embassy Caracas
Cable title:
VENEZUELAN OIL SHIFTING TO ASIA
how-toVZCZCXYZ0005 RR RUEHWEB DE RUEHCV #0104 0281311 ZNY CCCCC ZZH R 281311Z JAN 09 FM AMEMBASSY CARACAS TO RUEHC/SECSTATE WASHDC 2488 INFO RUEHBJ/AMEMBASSY BEIJING 0374 RUEHBO/AMEMBASSY BOGOTA 7921 RUEHBR/AMEMBASSY BRASILIA 6089 RUEHLP/AMEMBASSY LA PAZ JAN LIMA 1123 RUEHSP/AMEMBASSY PORT OF SPAIN 3643 RUEHQT/AMEMBASSY QUITO 2937 RUEHKO/AMEMBASSY TOKYO 0150 RHEBAAA/DEPT OF ENERGY RUCPDOC/DEPT OF COMMERCE RUMIAAA/HQ USSOUTHCOM MIAMI FL RUEATRS/DEPT OF TREASURY
C O N F I D E N T I A L CARACAS 000104
SIPDIS
ENERGY FOR CDAY AND ALOCKWOOD
HQ SOUTHCOM ALSO FOR POLAD
TREASURY FOR RJARPE
COMMERCE FOR 4431/MAC/WH/JLAO
E.O. 12958: DECL: 01/27/2019
TAGS: EPET EINV CH JA VE
SUBJECT: VENEZUELAN OIL SHIFTING TO ASIA
Classified By: Economic Counselor Darnall Steuart, for reasons 1.4 (b)
and (d).
C O N F I D E N T I A L CARACAS 000104
SIPDIS
ENERGY FOR CDAY AND ALOCKWOOD
HQ SOUTHCOM ALSO FOR POLAD
TREASURY FOR RJARPE
COMMERCE FOR 4431/MAC/WH/JLAO
E.O. 12958: DECL: 01/27/2019
TAGS: EPET EINV CH JA VE
SUBJECT: VENEZUELAN OIL SHIFTING TO ASIA
Classified By: Economic Counselor Darnall Steuart, for reasons 1.4 (b)
and (d).
1. (C) A senior BP executive told EconCon and Petroleum
Attache that PDVSA is shipping 100,000 b/d to China
non-competitively (PDVSA continues to pay transportation
costs). A senior Chevron executive noted that it has been
common knowledge that this is PDVSA's strategic direction.
At a separate meeting with the Japanese Ambassador, EMBOFFs
learned that the Japanese believe China is receiving
300,000-350,000 b/d from Venezuela.
2. (C) The Japanese Ambassador also shared that Japan's JBIC
is nearing finalization of a $1.5 billion loan, a 15-year
deal which will be covered by exports of 30,000 b/d of
Venezuela,s sweet Santa Barbara crude. PDVSA has rejected
one pricing formula but is currently reviewing a second
proposal from the Japanese. The Ambassador added that loan
negotiations must be completed by the end of JBIC's fiscal
year which he said occurs at the end of March.
3. (C) In a separate meeting with representatives from BNP
Paribas, EconOff learned that PDVSA paid back the loan the
bank brokered one month early (in December, vice the January
maturity date). BNP Paribas is considering whether to lead
another consortium to renew the facility. It depends in part
on whether Asian banks are willing to put up money. The bank
official shared that he heard that the Chinese have fronted
another $3-4 billion for the Fondo Chino. Finally, BNP
Paribas is seeing several of its competitors pulling out of
Venezuela. Societe General is leaving in June, and Royal
Bank of Scotland appears to be pulling out too.
CAULFIELD
SIPDIS
ENERGY FOR CDAY AND ALOCKWOOD
HQ SOUTHCOM ALSO FOR POLAD
TREASURY FOR RJARPE
COMMERCE FOR 4431/MAC/WH/JLAO
E.O. 12958: DECL: 01/27/2019
TAGS: EPET EINV CH JA VE
SUBJECT: VENEZUELAN OIL SHIFTING TO ASIA
Classified By: Economic Counselor Darnall Steuart, for reasons 1.4 (b)
and (d).
1. (C) A senior BP executive told EconCon and Petroleum
Attache that PDVSA is shipping 100,000 b/d to China
non-competitively (PDVSA continues to pay transportation
costs). A senior Chevron executive noted that it has been
common knowledge that this is PDVSA's strategic direction.
At a separate meeting with the Japanese Ambassador, EMBOFFs
learned that the Japanese believe China is receiving
300,000-350,000 b/d from Venezuela.
2. (C) The Japanese Ambassador also shared that Japan's JBIC
is nearing finalization of a $1.5 billion loan, a 15-year
deal which will be covered by exports of 30,000 b/d of
Venezuela,s sweet Santa Barbara crude. PDVSA has rejected
one pricing formula but is currently reviewing a second
proposal from the Japanese. The Ambassador added that loan
negotiations must be completed by the end of JBIC's fiscal
year which he said occurs at the end of March.
3. (C) In a separate meeting with representatives from BNP
Paribas, EconOff learned that PDVSA paid back the loan the
bank brokered one month early (in December, vice the January
maturity date). BNP Paribas is considering whether to lead
another consortium to renew the facility. It depends in part
on whether Asian banks are willing to put up money. The bank
official shared that he heard that the Chinese have fronted
another $3-4 billion for the Fondo Chino. Finally, BNP
Paribas is seeing several of its competitors pulling out of
Venezuela. Societe General is leaving in June, and Royal
Bank of Scotland appears to be pulling out too.
CAULFIELD