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Rousseff Says Brazil's Take From Libra Oil Project to Top $400 Billion

Brazil will get more than $400 billion in royalties and crude oil over the next 35 years from its share of the massive Libra offshore oil prospect, President Dilma Rousseff said Tuesday. In her weekly question-and-answer column with Brazilians, Ms. Rousseff said that new production-sharing agreements for Brazil’s offshore oil discoveries ensured the country’s "sovereignty over this treasure, with great benefits for the population and our economy." Ms. Rousseff’s administration has faced criticism from Brazilians who viewed the sale of the field as delivering Brazil’s natural resources into the hands of foreign companies. Protests marred the October auction, which featured heavy security by soldiers who fired tear gas in an attempt to disperse the crowd gathered outside the hotel where the sale was held. But the auction also generated lukewarm interest from private-sector companies that balked at the terms of the production-sharing agreements and heavy government oversight […]

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Rousseff Says Brazil’s Take From Libra Oil Project to Top $400 Billion

Brazil will get more than $400 billion in royalties and crude oil over the next 35 years from its share of the massive Libra offshore oil prospect, President Dilma Rousseff said Tuesday. In her weekly question-and-answer column with Brazilians, Ms. Rousseff said that new production-sharing agreements for Brazil’s offshore oil discoveries ensured the country’s "sovereignty over this treasure, with great benefits for the population and our economy." Ms. Rousseff’s administration has faced criticism from Brazilians who viewed the sale of the field as delivering Brazil’s natural resources into the hands of foreign companies. Protests marred the October auction, which featured heavy security by soldiers who fired tear gas in an attempt to disperse the crowd gathered outside the hotel where the sale was held. But the auction also generated lukewarm interest from private-sector companies that balked at the terms of the production-sharing agreements and heavy government oversight […]

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Petrobras Announces Discovery of Oil in Potiguar Basin

Petroleo Brasileiro SA or Petrobras, said Tuesday it found the first oil in the deep water of the Potiguar basin off the coast of the Brazilian state of Rio Grande do Norte. The oil was found in the 1-BRS-A-1205-RNS (1-RNS-158) well, also known as Pitu, under 1.1 miles of water 34.2 miles off the coast, the company said in an note to Brazil’s financial markets regulator. Write to Jeffrey T. Lewis at [email protected]

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Venezuela revamping its currency control system

Venezuela is overhauling decade-old currency controls to benefit its struggling oil industry and arrest the decline of the bolivar on the black market. Oil Minister Rafael Ramirez says the government’s nine-month-old U.S. dollar auction system will be expanded next year to provide a more favorable exchange rate to oil companies, tourists and the central bank’s gold purchases. Ramirez denies the move represents a stealth devaluation, though he says the auction mechanism will gradually replace the so-called Cadivi system that’s used to mete out dollars to Venezuelans. The government currently sells a dollar for 6.3 bolivars, but access is restricted and the greenback costs more than 10 times that amount on the black market. Ramirez doesn’t say what exchange rate will be used at the auctions. Ramirez made the announcement Monday. […]

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Venezuela's president tightens grip on media

As Gov. Henrique Capriles campaigned for president of Venezuela last April, he couldn’t venture more than a few steps without being hounded by dozens of sharp-elbowed cameramen and photographers. Nearly eight months later, the visibly thinner and exhausted opposition leader is accompanied by just a handful of journalists at what was supposed to be one of the final, electrifying opposition rallies ahead of this weekend’s mayoral elections. Critics say the shrinking media coverage has been deliberate. Even while Venezuelans endure their toughest economic crisis in 15 years of socialist rule, the opposition has been largely knocked from public view by what they claim is a government-led campaign to intimidate media outlets that give airtime to the opposition and the nation’s mounting woes. Between January and September, the number of attacks on journalists, cases of harassment and reports of censorship has risen 56 percent […]

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Venezuela’s president tightens grip on media

As Gov. Henrique Capriles campaigned for president of Venezuela last April, he couldn’t venture more than a few steps without being hounded by dozens of sharp-elbowed cameramen and photographers. Nearly eight months later, the visibly thinner and exhausted opposition leader is accompanied by just a handful of journalists at what was supposed to be one of the final, electrifying opposition rallies ahead of this weekend’s mayoral elections. Critics say the shrinking media coverage has been deliberate. Even while Venezuelans endure their toughest economic crisis in 15 years of socialist rule, the opposition has been largely knocked from public view by what they claim is a government-led campaign to intimidate media outlets that give airtime to the opposition and the nation’s mounting woes. Between January and September, the number of attacks on journalists, cases of harassment and reports of censorship has risen 56 percent […]

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Venezuela cyber crackdown ensnares Web’s Bitly

Venezuelans have been scrambling for dollars for weeks, taking refuge in the greenback as their own currency is in free fall. Rather than address the economic imbalances behind the bolivar’s plunge, the government is going after the bearers of the bad news – it’s taking down websites people use to track exchange rates on the black market. Cyber-activists say the crackdown goes to absurd lengths, even targeting Bitly, the popular site for shortening Web addresses to make it easier to send them as links via Twitter and other social media. For more than two weeks, access to the service has been partially censored by several Internet service providers in Venezuela, apparently because Bitly was being used to evade blocks put on currency-tracking websites. The New York company says such restrictions have only previously been seen in China, which has one of the worst […]

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Venezuela cyber crackdown ensnares Web's Bitly

Venezuelans have been scrambling for dollars for weeks, taking refuge in the greenback as their own currency is in free fall. Rather than address the economic imbalances behind the bolivar’s plunge, the government is going after the bearers of the bad news – it’s taking down websites people use to track exchange rates on the black market. Cyber-activists say the crackdown goes to absurd lengths, even targeting Bitly, the popular site for shortening Web addresses to make it easier to send them as links via Twitter and other social media. For more than two weeks, access to the service has been partially censored by several Internet service providers in Venezuela, apparently because Bitly was being used to evade blocks put on currency-tracking websites. The New York company says such restrictions have only previously been seen in China, which has one of the worst […]

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Brazil October Crude Oil Output Falls on Lower Pre-Salt Output

Brazil’s crude oil production fell slightly in October on reduced output from recently discovered offshore fields, the country’s National Petroleum Agency, or ANP, said Tuesday. Brazil produced an average 2.079 million barrels a day in October, down 0.7% from September but up 3.4% from October 2012, the ANP said. October’s output was undercut by operational troubles at a floating platform tapping oil deposits in Brazil’s pre-salt oil frontier, where billions of barrels of crude oil were discovered trapped under a thick layer of salt miles below the seabed, the ANP said. Pre-salt production fell to 308,400 barrels a day in October, down 6.5% from September, the ANP said. State-run energy giant Petroleo Brasileiro (PBR, PETR4.BR), or Petrobras, has boosted production in recent months as several new platforms were installed at offshore oil fields. The company has also completed renovations of several aging platforms in the Campos Basin, […]

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Venezuelan oil diplomacy curbed by economic crisis

he late President Hugo Chavez’s dream of leveraging Venezuela’s oil wealth to spread revolution across Latin America is crumbling under the weight of an economic crisis that is forcing his hand-picked successor to cut back on generous foreign aid. Signs of the country’s waning influence are becoming more apparent. In early November, Guatemala withdrew from the Petrocaribe oil alliance launched by Chavez, saying it didn’t receive the ultra-low financing rates it had been promised by Venezuela when it first sought to join the 18-nation pact in 2008. Also in recent weeks, representatives of Brazil and Colombia have held meetings with their Venezuelan counterparts to collect overdue payment for food, manufactured goods and other imports. While Venezuela has fallen behind on payments before, the latest cash crunch is more severe, and the economic outlook more uncertain, than any time in 15 years of socialist […]

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Venezuela’s Maduro Pledges Crackdown Against Foreign-Exchange Speculation

Venezuelan President Nicolas Maduro on Friday promised to intensify his crusade against alleged speculators and greedy businesses which he says are contributing to the oil-rich country’s economic troubles and pledged more state control over sectors fueling sky-high inflation. The leader unveiled a new price cap for commercial real estate and also appointed a few of his cabinet members to run a recently created state agency that will oversee all of Venezuela imports and exports, as well as access to dollars in a country that has had tight currency controls for the last decade. They are the latest measures by Mr. Maduro as he tries to tame an inflation rate well above 50%, rapid depreciation of the local bolivar currency and a shortage of dollars in the import-dependent economy, which has resulted in shortages of food and consumer goods. Regional elections on Dec. 8 are adding pressure […]

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Venezuela's Maduro Pledges Crackdown Against Foreign-Exchange Speculation

Venezuelan President Nicolas Maduro on Friday promised to intensify his crusade against alleged speculators and greedy businesses which he says are contributing to the oil-rich country’s economic troubles and pledged more state control over sectors fueling sky-high inflation. The leader unveiled a new price cap for commercial real estate and also appointed a few of his cabinet members to run a recently created state agency that will oversee all of Venezuela imports and exports, as well as access to dollars in a country that has had tight currency controls for the last decade. They are the latest measures by Mr. Maduro as he tries to tame an inflation rate well above 50%, rapid depreciation of the local bolivar currency and a shortage of dollars in the import-dependent economy, which has resulted in shortages of food and consumer goods. Regional elections on Dec. 8 are adding pressure […]

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Venezuela’s Maduro vows stricter business inspections

Venezuela’s President Nicolas Maduro said a stricter wave of inspections for suspected price-gouging would begin on Saturday in an aggressive pre-election "economic offensive" aimed at taming the highest inflation in the Americas. "We’re not joking, we’re defending the rights of the majority, their economic freedom," Maduro said on Friday, alleging price irregularities were found in nearly 99 percent of 1,705 businesses inspected so far this month. Maduro, who has staked his presidency on preserving the legacy of late socialist leader Hugo Chavez, launched a theatrical – and often televised – wave of inspections this month to force companies to reduce prices. He says "capitalist parasites" are trying to wreck Venezuela’s economy and force him from office. Opponents scoff at the measures as cheap and short-term populism that is hiding the failure of Venezuela’s socialist economic model and intended to win votes at an upcoming poll. Economic […]

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Venezuela's Maduro vows stricter business inspections

Venezuela’s President Nicolas Maduro said a stricter wave of inspections for suspected price-gouging would begin on Saturday in an aggressive pre-election "economic offensive" aimed at taming the highest inflation in the Americas. "We’re not joking, we’re defending the rights of the majority, their economic freedom," Maduro said on Friday, alleging price irregularities were found in nearly 99 percent of 1,705 businesses inspected so far this month. Maduro, who has staked his presidency on preserving the legacy of late socialist leader Hugo Chavez, launched a theatrical – and often televised – wave of inspections this month to force companies to reduce prices. He says "capitalist parasites" are trying to wreck Venezuela’s economy and force him from office. Opponents scoff at the measures as cheap and short-term populism that is hiding the failure of Venezuela’s socialist economic model and intended to win votes at an upcoming poll. Economic […]

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Venezuela Says OPEC Must Accommodate Iran Supply, Maintain Output Cap

Members of the Organization of Petroleum Exporting Countries will have to accommodate any additional oil supply into the market in light of the recent easing of economic sanctions on Iran without changes to the cartel’s overall production ceiling, Venezuela Oil Minister Rafael Ramirez said Thursday. Mr. Ramirez said how Iranian crude is absorbed into the market will feature highly in discussions next week when OPEC members gather. Venezuela will push to maintain the group’s 30-million-barrels-a-day quota, the minister said. The U.S. and five other world powers reached an agreement on Sunday in Geneva to relieve some penalties on Iran in exchange for moves to cap the Islamic government’s nuclear program. “If this permits Iran to reach its maximum oil production, perfect. Then its production quota is guaranteed in OPEC, which must be respected, and we are going to back that [Iran’s] normalization is respected,” Mr. Ramirez […]

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Raízen breaks ground on Iogen cellulosic ethanol facility in Brazil

Raízen breaks ground on Iogen cellulosic ethanol facility in Brazil Iogen Corporation announced that Brazilian ethanol giant Raízen Energia Participações S/A has started construction of a commercial biomass-to-ethanol facility using Iogen Energy’s advanced cellulosic biofuel technology. (Iogen Energy is a joint venture between Raízen and Iogen Corporation. Earlier post .) The $100-million plant, to be located adjacent to Raízen’s Costa Pinto sugar cane mill in Piracicaba, São Paulo, will produce 40 million liters (10.6 million gallons US) of cellulosic ethanol a year from sugarcane bagasse and straw. Plant start-up is anticipated in the fourth quarter of 2014. Iogen will provide cellulosic ethanol related process technology, process designs and start-up and operational […]

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How China took control of an OPEC country’s oil

China’s aggressive quest for foreign oil has reached a new milestone, according to records reviewed by Reuters: near monopoly control of crude exports from an OPEC nation, Ecuador. Last November, Marco Calvopiña, the general manager of Ecuador’s state oil company PetroEcuador, was dispatched to China to help secure $2 billion in financing for his government. Negotiations, which included committing to sell millions of barrels of Ecuador’s oil to Chinese state-run firms through 2020, dragged on for days. Calvopiña grew anxious and threatened to leave. "If the Phase III transaction documents are not signed in the coming days, then I cannot remain in Beijing," he wrote in a confidential letter to China Development Bank (CDB), reviewed by Reuters. In reality, Calvopiña had little choice but to wait. Shunned by most lenders since a $3.2 billion debt default in 2008, Ecuador now relies heavily on Chinese funds, […]

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How China took control of an OPEC country's oil

China’s aggressive quest for foreign oil has reached a new milestone, according to records reviewed by Reuters: near monopoly control of crude exports from an OPEC nation, Ecuador. Last November, Marco Calvopiña, the general manager of Ecuador’s state oil company PetroEcuador, was dispatched to China to help secure $2 billion in financing for his government. Negotiations, which included committing to sell millions of barrels of Ecuador’s oil to Chinese state-run firms through 2020, dragged on for days. Calvopiña grew anxious and threatened to leave. "If the Phase III transaction documents are not signed in the coming days, then I cannot remain in Beijing," he wrote in a confidential letter to China Development Bank (CDB), reviewed by Reuters. In reality, Calvopiña had little choice but to wait. Shunned by most lenders since a $3.2 billion debt default in 2008, Ecuador now relies heavily on Chinese funds, […]

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Argentina nears deal with Spanish group Repsol over YPF seizure

Argentina is close to striking a deal with Spanish oil group Repsol to compensate the company for the nationalisation of its YPF unit last year which prompted a diplomatic crisis between Buenos Aires and Madrid. A delegation from Spain, including José Manuel Soria, industry minister, and several executives from Repsol , met Argentine officials in Buenos Aires on Monday to reach a preliminary agreement over compensation for the Spanish company, people close to the talks said. Repsol said in a statement on Monday night that it had noted the agreement between the governments and would consider its value to its shareholders ahead of a board meeting scheduled for Wednesday. Argentina, led by president Cristina Fernández, expropriated Repsol’s majority stake in YPF, its former state oil company, last year after accusing the company of failing to invest sufficiently in the country’s energy sector, a charge Repsol vehemently denied. Repsol was […]

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Costa Rica to build 3 geothermal electricity plants with Japanese funding

The Tico Times has a report on plans to expand geothermal power in Costa Rica – Costa Rica to build 3 geothermal electricity plants with Japanese funding . Costa Rica hopes that the additional electricity generated by steam from the volcanic area will help the country reach its goal of generating 95 percent of its electricity with renewable resources by 2014. … The first of the proposed plants, Pailas II, will have an electrical generation capacity of 55 megawatts and will cost more than $333 million to build, according to a statement from Casa Presidencial. The costa Rican Electricity Institute, or ICE, will construct two other 50-MW power plants, Borinquen I and II, 40 kilometers away from the Pailas geothermal plants. “This is 165 MW of reliable [electricity generation]; that is to say, they will operate 24 hours a day, 365 days a year. This is clean, renewable and […]

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Venezuela’s congress grants Maduro decree powers

CARACAS, Venezuela (AP) — The Venezuelan congress granted President Nicolas Maduro emergency decree powers Tuesday that will strengthen the embattled leader’s hand as he goes after businesses the government accuses of sabotaging Latin America’s biggest oil economy. With the National Assembly’s vote, widely expected since Maduro requested expanded powers a month ago, the president will be able to enact laws without consulting congress for up to a year. The same tactic was employed four times by Maduro’s mentor and predecessor, the late Hugo Chavez, to promulgate dozens of laws that dramatically boosted state control over the economy. But unlike the charismatic Chavez, who had near-absolute command over his party, doubts about Maduro’s leadership have risen since he defeated opposition leader Henrique Capriles by a razor-thin margin in April’s presidential election and as worsening shortages of basic goods and galloping inflation have eroded popular support for his rule In what […]

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Venezuela's congress grants Maduro decree powers

CARACAS, Venezuela (AP) — The Venezuelan congress granted President Nicolas Maduro emergency decree powers Tuesday that will strengthen the embattled leader’s hand as he goes after businesses the government accuses of sabotaging Latin America’s biggest oil economy. With the National Assembly’s vote, widely expected since Maduro requested expanded powers a month ago, the president will be able to enact laws without consulting congress for up to a year. The same tactic was employed four times by Maduro’s mentor and predecessor, the late Hugo Chavez, to promulgate dozens of laws that dramatically boosted state control over the economy. But unlike the charismatic Chavez, who had near-absolute command over his party, doubts about Maduro’s leadership have risen since he defeated opposition leader Henrique Capriles by a razor-thin margin in April’s presidential election and as worsening shortages of basic goods and galloping inflation have eroded popular support for his rule In what […]

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Bolivia says it’s on track to develop nuclear power

LA PAZ, Bolivia, Nov. 19 (UPI) — Bolivia is on track to develop a national nuclear power program for peaceful civilian purposes that include building electricity export capacity in the country, official media reported. Ever since Bolivian President Evo Morales outlined plans in October for a long-delayed nuclear power generation program, officials in La Paz have been pursuing follow-up discussions with Argentina, a future partner and experienced nuclear power producer, Bolivian news reports said. Bolivia’s nuclear energy approach is evolving into a two-pronged policy that’s set to lead to a more vigorous government pursuit of a domestic nuclear power generation program and exploration, development and export of the country’s numerous deposits, reports in Los Tiempos and other local media said. The U.N. International Atomic Energy Agency in Vienna notes on its website that not all data about Bolivia’s uranium deposits are readily available. Morales told an energy conference in […]

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Bolivia says it's on track to develop nuclear power

LA PAZ, Bolivia, Nov. 19 (UPI) — Bolivia is on track to develop a national nuclear power program for peaceful civilian purposes that include building electricity export capacity in the country, official media reported. Ever since Bolivian President Evo Morales outlined plans in October for a long-delayed nuclear power generation program, officials in La Paz have been pursuing follow-up discussions with Argentina, a future partner and experienced nuclear power producer, Bolivian news reports said. Bolivia’s nuclear energy approach is evolving into a two-pronged policy that’s set to lead to a more vigorous government pursuit of a domestic nuclear power generation program and exploration, development and export of the country’s numerous deposits, reports in Los Tiempos and other local media said. The U.N. International Atomic Energy Agency in Vienna notes on its website that not all data about Bolivia’s uranium deposits are readily available. Morales told an energy conference in […]

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Ecuador Spent $2.77 Billion on Fuel Subsidies During January-Sept

By Mercedes Alvaro QUITO–Ecuador spent about $2.77 billion on fuel subsidies for the January-September period, including high-octane naphtha, diesel and gas for cooking, the central bank said. The amount represents a 13% increase from the same period last year. During the first nine months of 2013, Ecuador imported a total of $4.14 billion in oil derivatives. Of the total spent on oil subsidies, about 49% went to diesel, 36% to high-octane naphtha and 15% went to cooking gas. According to official data, the main beneficiaries of the subsidies in Ecuador are high-income earners, due to their energy-consumption levels. Last year, the government spent about $3.4 billion in fuel subsidies. Currently, the government is reviewing its policy of subsidizing fuel to refocus the approach. Patricio Rivera, minister coordinator for Economic Policies, said recently in an interview the option to refocus fuel subsidies would be to set consumption quotas, and those […]

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Attorney Takes Stand in Chevron Case

New York lawyer Steven Donziger was the mastermind behind a litigation team that spent more than $21.4 million to allegedly extort billions from Chevron Corp. CVX +0.42% Chevron Corp. U.S.: NYSE $ 120.56 +0.50 +0.42% Nov. 18, 2013 4:02 pm Volume (Delayed 15m) : 4.74M AFTER HOURS $ 120.50 -0.06 -0.05% Nov. 18, 2013 5:14 pm Volume (Delayed 15m): 50,618 P/E Ratio 9.79 Market Cap $230.90 Billion Dividend Yield 3.32% Rev. per Employee $3,588,150 11/18/13 Attorney Takes Stand in Chevro… 11/15/13 Ecuador Seeks Suspension of Ch… 11/15/13 Chevron is Having a Very Bad W… More quote details and news » CVX in Your Value Your Change Short position over environmental damage claims in Ecuador’s Amazon Basin, a lawyer for the oil giant said Monday. Mr. Donziger took the stand in federal court in Manhattan to defend himself against racketeering charges brought by Chevron. Observers in the packed courtroom included […]

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In Venezuela, Campaign Takes the Form of a Fire Sale

CARACAS, Venezuela — The transportation minister appeared on live television from an auto-parts store, trumpeting prices that had been slashed in half, at least. A top regional official, broadcasting from another shop, boasted that prices of toys and other goods had been cut to the bone. From an appliance store, the commerce minister called on shoppers to buy washers and dryers at new, low-low prices. This week, the entire cabinet of President Nicolás Maduro of Venezuela has been waging a battle against soaring inflation like a socialist version of Crazy Eddie, the onetime electronics chain store famous in New York for its goofy 1980s ads that trumpeted its “insane” prices. It is all part of a fever-pitch campaign to quell frustration with the economy by forcing retailers to slash prices, giving a much-needed shot of adrenaline to Mr. Maduro’s government just weeks before municipal elections that opponents want to […]

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PDVSA to Sell $4.5 Billion in Bonds Amid Pre-Election Shortages

Petroleos de Venezuela SA will sell $4.5 billion in bonds this week in the first issuance by a state entity since May 2012 as the government seeks to bolster shrinking reserves and curb the world’s fastest inflation. PDVSA, as the state oil company is known, will sell debt privately to selected state and private buyers to pay off debts and boost output, company President Rafael Ramirez told reporters in Caracas today. The securities will have several maturity dates, he said, without providing more details. The government is seeking to boost dollar supply to pay for imports and offset a shortage of locally produced goods that has helped spur 54 percent annual inflation. President Nicolas Maduro dispatched the military to take over a retail chain last weekend and warned other businesses to cut prices to “fair” levels as the country gears up for municipal elections next month and the Christmas […]

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Brazil to Boost Oil Exports as Output Triples, IEA Says

Brazil will triple oil production by 2035 and become a major exporter as it develops the Americas’ largest discoveries in almost four decades, the International Energy Agency said. Latin America’s largest economy will produce 6 million barrels a day in 2035 and account for one-third of the increase in global crude output, the Paris-based agency said. The IEA forecasts that Brazil will be the world’s sixth-largest producer, up from 12th now. The new production will come mostly from deposits trapped under a layer of salt more than two miles beneath the Atlantic Ocean’s floor, the so-called pre-salt fields. Deep-water fields including Libra and Lula, the largest oil discoveries in the Western Hemisphere since Mexico ’s Cantarell field in 1976, have attracted investments from Royal Dutch Shell Plc (RDSA) and Total SA. (FP) “The increase in oil and gas production is dependent on highly complex and capital-intensive deepwater developments, requiring […]

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Venezuela’s Maduro poised to get decree powers

AP Photo CARACAS, Venezuela (AP) — Venezuela’s National Assembly on Tuesday stripped an opposition lawmaker of her immunity from prosecution in a case of alleged corruption, clearing the way for the legislature to grant the president special power to enact laws by decree. President Nicolas Maduro has said he will use the extra authority to intensify actions against opponents and businesses that he says are waging “economic war” trying to destabilize the South American country. As a result of the assembly’s vote, which was widely expected, lawmaker Maria Aranguren will have to step down while she faces prosecution on what she says are trumped up embezzlement charges. Aranguren, who broke with the late President Hugo Chavez’s government in 2012, will be replaced by a lawmaker more in line with the government’s wishes, likely giving the president the crucial 99th vote he needs to ensure passage of the decree powers. […]

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Venezuela's Maduro poised to get decree powers

AP Photo CARACAS, Venezuela (AP) — Venezuela’s National Assembly on Tuesday stripped an opposition lawmaker of her immunity from prosecution in a case of alleged corruption, clearing the way for the legislature to grant the president special power to enact laws by decree. President Nicolas Maduro has said he will use the extra authority to intensify actions against opponents and businesses that he says are waging “economic war” trying to destabilize the South American country. As a result of the assembly’s vote, which was widely expected, lawmaker Maria Aranguren will have to step down while she faces prosecution on what she says are trumped up embezzlement charges. Aranguren, who broke with the late President Hugo Chavez’s government in 2012, will be replaced by a lawmaker more in line with the government’s wishes, likely giving the president the crucial 99th vote he needs to ensure passage of the decree powers. […]

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Ecuador Court Affirms and Halves Chevron Judgment

QUITO, Ecuador—Ecuador’s highest court affirmed an environmental verdict against Chevron Corp. CVX -0.89% Chevron Corp. U.S.: NYSE $ 120.00 -1.08 -0.89% Nov. 12, 2013 4:00 pm Volume (Delayed 15m) : 6.05M AFTER HOURS $ 120.06 +0.06 +0.05% Nov. 12, 2013 7:47 pm Volume (Delayed 15m): 867,941 P/E Ratio 9.75 Market Cap $232.86 Billion Dividend Yield 3.33% Rev. per Employee $3,588,150 11/12/13 Chevron, Brazil’s Petrobras St… 11/01/13 Chevron Pumps Up Its Spending 11/01/13 The Race for Oil, and Chevron’… More quote details and news » CVX in Your Value Your Change Short position but cut the judgment against the oil giant in half. Ecuador’s National Court of Justice ruled late Tuesday that Chevron must pay $9.5 billion to plaintiffs in the country’s rainforests over decades-old contamination. The verdict had stood at $19 billion, but the court tossed out punitive damages that were imposed in 2011 after Chevron refused to apologize […]

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CNPC, PetroChina to Buy Peru Oil, Gas Assets From Petrobras for US$2.6 Bln

By Yvonne Lee HONG KONG–China National Petroleum Corp., the country’s largest integrated oil producer, will pay US$2.6 billion for oil and gas assets in Peru, in the latest foray by China’s state-owned oil firms into Latin America. CNPC and its unit PetroChina Co. (0857.HK) have reached a deal with Brazil’s state-owned Petroleo Brasileiro SA (PBR), or Petrobras, to buy Petrobras Energia Peru S.A., which owns three oil and gas blocks in Peru, the Chinese firm said Wednesday. China has looked to Latin America and Africa in recent years to meet its energy needs, with domestic oil output slowing in the past decade as its fields mature. PetroChina has said it aims for overseas production to account for half of its business by 2015. PetroChina produced a total 67.5 million barrels of oil equivalent overseas in the first half of 2013, up 8% on year and accounting for 9.7% of […]

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Brazil to Triple Oil Output to 6 Million Barrels/Day by 2035 — IEA

RIO DE JANEIRO–Brazil’s recently discovered offshore oil fields will triple the country’s current crude oil output to six million barrels per day by 2035, making Latin America’s largest country a leading producer and exporter, the International Energy Agency said Tuesday. Brazil discovered billions of barrels of crude trapped under a thick layer of salt beneath the Atlantic Ocean off the country’s southeast coast, finds that will make the country the world’s sixth-largest producer and a major oil exporter, the IEA said. Development of the fields, however, will be complex and expensive when compared with other areas holding large oil reserves such as the Middle East or Russia, the IEA warned. Brazil currently produces about two million barrels of oil per day. In October, Brazil sold rights to develop one of the fields–the Libra prospect–to a group led by state-run energy giant Petroleo Brasileiro SA (PBR, PETR4.BR) that also included […]

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Venezuela arrests looters, store bosses in 'economic war'

CARACAS (Reuters) – President Nicolas Maduro’s government announced arrests of both store managers and looters on Sunday as part of what it calls an "economic war" in Venezuela between the socialist state and unscrupulous businessmen. In a major pre-Christmas campaign reminiscent of the late President Hugo Chavez’s dramatic style, Maduro has sent soldiers to "occupy" one chain of electronics stores and inspectors into scores of others to check for price-gouging. Thousands of Venezuelans have been flocking to electronics stores, hoping to take advantage of new "fair prices" the government is imposing, sometimes half the previous cost. However, scenes of looting on Saturday at a store belonging to the occupied electronics chain, Daka, have left many Venezuelans ashamed and fueled opposition claims that Maduro is stirring chaos rather than defending the poor. Authorities announced that five managers, from the local Daka, JVG and Krash companies, would be prosecuted on charges […]

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Venezuela arrests looters, store bosses in ‘economic war’

CARACAS (Reuters) – President Nicolas Maduro’s government announced arrests of both store managers and looters on Sunday as part of what it calls an "economic war" in Venezuela between the socialist state and unscrupulous businessmen. In a major pre-Christmas campaign reminiscent of the late President Hugo Chavez’s dramatic style, Maduro has sent soldiers to "occupy" one chain of electronics stores and inspectors into scores of others to check for price-gouging. Thousands of Venezuelans have been flocking to electronics stores, hoping to take advantage of new "fair prices" the government is imposing, sometimes half the previous cost. However, scenes of looting on Saturday at a store belonging to the occupied electronics chain, Daka, have left many Venezuelans ashamed and fueled opposition claims that Maduro is stirring chaos rather than defending the poor. Authorities announced that five managers, from the local Daka, JVG and Krash companies, would be prosecuted on charges […]

Posted On : Published By : Tom Whipple
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Venezuelan Soldiers Deployed to Stores

CARACAS, Venezuela — The Christmas shopping season has started with a jolt here, with the socialist Venezuelan government dispatching soldiers to “occupy” a major chain of electronic goods stores, ordering prices slashed there and in other shops that it has accused of price gouging. Huge crowds formed outside stores in several cities over the weekend as inflation-weary Venezuelans showed up hoping for bargains. Others took the government’s order as a license to loot: Some posted cellphone videos online showing large-screen televisions and other items being carted off in Valencia, the country’s third-largest city. The dramatic measures, ordered on Friday by President Nicolás Maduro, were reminiscent of the populist gestures of his immediate predecessor, Hugo Chávez, the country’s longtime leader who died in March . They come as the government grapples with serious economic problems, including inflation of 54 percent a year and shortages of many basic goods, including toilet […]

Posted On : Published By : Tom Whipple
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Brazil greenhouse gas emissions lowest in 20 years

SAO PAULO (AP) — Emission levels of greenhouse gases in Latin America’s biggest country fell last year to their lowest in two decades, a Brazilian network of environmental groups said in a report released Thursday. The Observatorio do Clima, or Climate Observatory, network is comprised of more than 30 non-governmental organizations focused on climate change. It said greenhouse gas emissions amounted to 1.48 billion metric tons in 2012 compared to 1.43 billion metric tons in 1992. Their highest point was 2.86 billion metric tons in 1995. The report measured gas emissions caused by deforestation, farming, the energy and industrial sectors and the burning of crop residues. Emissions from deforestation have dropped, but emissions from the other activities have risen and could go up more because of gasoline subsidies and increased use of thermal power, it said. Although they have dropped sharply, emissions from deforestation are still responsible for most […]

Posted On : Published By : Tom Whipple
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Venezuela PdVSA Says Debts Resolved With 76% of Service Providers

By Kejal Vyas MARACAIBO, Venezuela–State energy company Petroleos de Venezuela, or PdVSA, has paid off some 76% of its more than 5,000 service providers who have reported long delays before receiving payments owed by the oil giant, Venezuela Oil Minister Rafael Ramirez said Thursday. Mr. Ramirez declined to specify in dollar terms how much was paid of the company’s total debt to service providers, which rose 35% last year to $16.7 billion. However, he said officials aimed to erase the remaining 24% of owed money over the next two months. “We want to start 2014, a year of production increases, with a private sector that doesn’t have the pressure of the debt,” Mr. Ramirez told investors at an oil conference. “We are fixing all of our affairs with private companies,” he added. PdVSA, which is the breadwinner for Venezuela’s economy and finances the government’s politically important social programs for […]

Posted On : Published By : Tom Whipple
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Superior Energy Equipment Seized by PDVSA in Venezuela

Petroleos de Venezuela SA, the state oil company, seized about $1 million worth of equipment from Superior Energy Services Inc. (SPN) , the Houston-based company said. PDVSA expropriated two hydraulic units that were idled after the Caracas-based company missed payments, Greg Rosenstein, head of corporate development, said by phone from New Orleans. The units operated in eastern Venezuela’s Anzoategui state, Associated Press reported Nov. 1. The move follows comments by Oil Minister Rafael Ramirez on Sept. 11 that private companies unwilling to work with PDVSA on increasing production capacity should leave the country. Superior has operated in Venezuela for 15 years. “We were surprised by the takeover as we have had a cordial relationship with PDVSA,” Rosenstein says. “We continue to work with PDVSA and the Venezuelan authorities and look to resolve this issue soon.” The so-called snubbing units have a combined value of about $1 million and Superior’s […]

Posted On : Published By : Tom Whipple
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Rebels in Colombia Hit Energy Sector Hard in 'Black October'

BOGOTA—Colombia’s energy sector, the main driver of its economy, is limping away from “Black October,” a term coined by Marxist rebels who set forth on a month-long blitzkrieg, attacking oil pipelines, coal trains, electricity plants and transmission towers in a show of strength during peace talks with the government. There were roughly two dozen attacks during October on high-profile targets like oil pipelines, according to security analysts and companies. That was more than double the number of attacks in September and by far the highest for any month this year, according to analysts. The Colombian government usually comes out with a count months later. Colombia’s army declined to comment. Most of the attacks are believed to be the work of the country’s main guerrilla force, the Revolutionary Armed Forces of Colombia, or FARC. The attacks add to doubts about the rebels’ sincerity in reaching a peace agreement with the […]

Posted On : Published By : Tom Whipple
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Rebels in Colombia Hit Energy Sector Hard in ‘Black October’

BOGOTA—Colombia’s energy sector, the main driver of its economy, is limping away from “Black October,” a term coined by Marxist rebels who set forth on a month-long blitzkrieg, attacking oil pipelines, coal trains, electricity plants and transmission towers in a show of strength during peace talks with the government. There were roughly two dozen attacks during October on high-profile targets like oil pipelines, according to security analysts and companies. That was more than double the number of attacks in September and by far the highest for any month this year, according to analysts. The Colombian government usually comes out with a count months later. Colombia’s army declined to comment. Most of the attacks are believed to be the work of the country’s main guerrilla force, the Revolutionary Armed Forces of Colombia, or FARC. The attacks add to doubts about the rebels’ sincerity in reaching a peace agreement with the […]

Posted On : Published By : Tom Whipple
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Venezuela’s government seizes US-owned oil rigs

Page added on November 3, 2013 Venezuela has quietly seized control of two oil rigs owned by a unit of Houston-based Superior Energy Services after the company shut them down because the state oil monopoly was months behind on payments.   The seizure took place Thursday after a judge in the state of Anzoategui, accompanied by four members of the local police and national guard, entered a Superior depot and ordered it to hand over control of two specialized rigs to an affiliate of PDVSA, the state-owned oil producer.   PDVSA justified the equipment’s expropriation, calling it essential to the South American nation’s development and welfare, according to a court order obtained by The Associated Press. Company workers were instructed to load the rigs, known as snubbing units and used to repair damaged casing, onto trucks to be deployed at “critical wells” elsewhere, according to the document.   “It […]

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Petrobras pegs success to Libra oil field

RIO DE JANEIRO, Oct. 31 (UPI) — Production from the offshore Libra area in Brazil is expected to help Petrobras reach its long-term objectives, the company’s president said. State-controlled Petroleo Brasileiro, known also as Petrobras, said it expects the first oil to be extracted from the Libra area in 2020. Company President Maria das Gracas Silva Foster said investments in Libra will be more significant as 2020 draws nearer. Oil workers with Petrobras staged a strike in mid-October to protest the auction for Libra. They wanted better wages and opposed a congressional measure for outsourcing of workers. Royal Dutch Shell, French energy company Total, China National Petroleum Corp., China National Offshore Oil Corp., and Petrobras, won a 35-year production sharing contract last week for the Libra field in the Santos Basin off the coast of Brazil. Foster said in a statement Wednesday the terms of the auction were “clear, […]

Posted On : Published By : Tom Whipple
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Eike Batista's Empire Soared, Then Melted Into Bankruptcy

RIO DE JANEIRO—In 2006, Eike Batista strode into Rio’s opulent Copacabana Palace hotel for cocktails with a Canadian pension fund looking to play Brazil’s rise. The Brazilian entrepreneur captivated his hosts with a brazen pitch: He aimed to be the world’s richest man, and investors along for the ride would prosper, too. “The way he says it, it doesn’t sound crazy,” says Brian Gibson, then a senior vice president with the Ontario Teacher’s Pension Plan, which organized the reception. “As an investor, you are looking for someone who is hungry,” Mr. Gibson says. “I didn’t know if he was going to be the richest or not, and I didn’t care.” Mr. Batista didn’t make it. Instead, he presided over one of the most breathtaking rise-and-fall stories in the history of business. Starting in 2006, Mr. Batista publicly listed five startups in five years, creating a Brazilian commodities empire from […]

Posted On : Published By : Tom Whipple
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Eike Batista’s Empire Soared, Then Melted Into Bankruptcy

RIO DE JANEIRO—In 2006, Eike Batista strode into Rio’s opulent Copacabana Palace hotel for cocktails with a Canadian pension fund looking to play Brazil’s rise. The Brazilian entrepreneur captivated his hosts with a brazen pitch: He aimed to be the world’s richest man, and investors along for the ride would prosper, too. “The way he says it, it doesn’t sound crazy,” says Brian Gibson, then a senior vice president with the Ontario Teacher’s Pension Plan, which organized the reception. “As an investor, you are looking for someone who is hungry,” Mr. Gibson says. “I didn’t know if he was going to be the richest or not, and I didn’t care.” Mr. Batista didn’t make it. Instead, he presided over one of the most breathtaking rise-and-fall stories in the history of business. Starting in 2006, Mr. Batista publicly listed five startups in five years, creating a Brazilian commodities empire from […]

Posted On : Published By : Tom Whipple