New blow to PDVSA: PetroChina has released the Venezuelan company of a refinery project

While the international community is putting pressure on Nicolás Maduro's regime, problems are worsening around Petróleos de Venezuela (PDVSA), the main source of funding for the Caribbean country. PetroChina Co plans to take the Venezuelan state from an oil refinery and petrochemical plant project of $ 10 billion in southern ChinaThree sources who know the question said this week.

The decision of the company adds to the problems of the Venezuelan national oil company, which is subject to US sanctions.

However, the dismissal from the company was not a reaction to Washington's sanctions, but a consequence. the deterioration of PDVSA's financial situation In recent years, two of the sources said, the two leaders of China National Petroleum Corp, The parent company of PetroChina.

"PDVSA will have no role to play as a partner of the property. At least we do not see this possibility in the near future given the situation that has crossed the country in recent years (Venezuela), "said one of the leaders, who asked not to be identified because he He was not allowed to speak to the press.

The measure illustrates the loss of depth of the relationship between Venezuela and China, which has granted loans of $ 50 billion to this country of South America in exchange for oil.

China, the world's largest oil importer, is now the second largest Venezuelan fuel buyer in Asia, with 16.63 million tonnes, or about 332,000 barrels per day (bpd) in 2018.

Relations began to deteriorate in 2015, when Venezuela asked for a change in the terms of payment of the debt to mitigate the effects of lower production and oil prices.

Instead of granting major new loans, Beijing has made small investments or extended extensions of grace periods for loans.

The effects of US sanctions on PDVSA

The reporter added that, according to merchants and a PDVSA supply officer, At least six "Russian oil traders" have suspended their contracts with the Venezuelan company.

"It threatens to leave the company without gasoline and diluent to transport its crude oil," Kurmanaev warned.

Similarly, he explained that there remained ten days of gas supply at PDVSA.

The Russian journalist acknowledged that oil companies such as Lukoil can resume their deliveries, but for that "They need guarantees against sanctions and price increases."

With Reuters information