Playing all 2 OILD SCO and DRIP
US Treasury said a company purchasing oil from a Russian company would still be able to route the payment through a non-sanctioned third-country financial institution as an intermediary for credit to a sanctioned financial institution’s customer in settlement of the transaction.”
Need to keep the Petrodollars flowing so no ban on Gazprom, LUkoil or Rosneft cash flow.
Also new negotiations with Venezuela and Iran will bring more petrodollars
US & Iran Close To Reaching Nuclear Deal In Vienna, Biden Officials Signal
Tyler Durden's Photo
BY TYLER DURDEN
WEDNESDAY, FEB 02, 2022 - 02:25 PM
Authored by Dave DeCamp via AntiWar.com,
Biden administration officials are signaling that the US and Iran are close to reaching an agreement to revive the nuclear deal, known as the JCPOA, The New York Times reported on Monday.
The JCPOA negotiations that have been ongoing in Vienna are currently on pause as diplomats have returned to their capitals for consultations. Envoys on all sides have signaled the talks are entering their final stage and that now "political decisions" need to be mad
The alleged meeting with the government Washington considers ‘illegitimate’ comes amid efforts to replace Russian oil
Senior US officials reportedly traveled to Venezuela to meet with President Nicolás Maduro’s government as Russia’s conflict with Ukraine continues. Citing multiple unnamed sources “familiar with the matter,” the New York Times reported on Saturday that the meeting is the “highest-level visit” from the US in years after it broke diplomatic relations with the country in 2019 and recognized pro-US politician Juan Guaido as “interim” president of Venezuela over the legitimate President Nicolas Maduro.
US President Joe Biden’s administration is allegedly attempting to “separate Russia from its remaining international allies” as unnamed US officials believe Moscow’s allies in Latin America “could become security threats if the standoff with Russia” over Ukraine worsens.
READ MORE: Venezuela’s Maduro gives his take on Russia-Ukraine conflict
Former Republican Virginia Congressman Scott Taylor claimed on Friday that a Venezuelan businessman had suggested Maduro was open to discussion with the US, while Maduro himself said in a speech on Thursday that “the oil of Venezuela” was “available for whomever wants to produce and buy it, be it an investor from Asia, Europe or the United States.”
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<img src="https://cdni.rt.com/files/2022.02/xxs/620131172030274e784c7765.jpg" alt="US weighs seizing Venezuelan oil – reports"/>
READ MORE: US weighs seizing Venezuelan oil – reports
While the senior US officials are reportedly meeting with Maduro’s government, the US government still officially recognizes Guaido as the leader of Venezuela and does not recognize Maduro’s presidency as legitimate.
In a statement from January, US State Department spokesperson Ned Price said the government “continues to recognize the authority of the democratically elected 2015 National Assembly as the last remaining democratic institution and Juan Guaidó as Venezuela’s interim president.” In July, the US State Department called Maduro’s government “illegitimate” five times in a single article.
US Considers Chevron Request To Take, Trade Venezuelan Oil As Oil Giant Pushes For Production Boost
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BY TYLER DURDEN
MONDAY, FEB 07, 2022 - 12:14 PM
The Biden administration is currently reviewing a request from Chevron to potentially allow the U.S. oil giant to take and trade crude from Venezuela as a form of payment for the millions of dollars the South American producer owes Chevron for its joint ventures there, Reuters reported on Monday, quoting sources with knowledge of the talks.
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As Charles Kennedy writes at OilPrice.com, Chevron is the last remaining U.S. oil producer with staff and offices in Venezuela and has a joint venture with the local state-controlled oil firm PDVSA.
The U.S. major is now lobbying with the Biden Administration to be allowed sanctions relief and be able to take and trade Venezuelan crude as a means to recover the dividends and payments it is owed by the joint venture with PDVSA, according to Reuters’ sources.
The administration has an incentive to ease some of the sanctions on Venezuela, most importantly, to bring something to the negotiating table with the Venezuelan regime, one of those sources told Reuters.
Yet, some officials in the Biden administration are not inclined to the Administration’s easing of the sanctions in any way, at least not until Nicolas Maduro makes first steps toward ensuring democratic elections, the sources added.
Additionally, last week, Kennedy reported that Chevron is in talks with the Venezuelan government to gain more control over their joint venture and help Caracas boost oil production.
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Bloomberg reported that the negotiations are being led by the chief of Chevron’s Venezuelan division, Javier La Rosa, and PDVSA’s president, Asdrubal Chavez, according to unnamed sources in the know.
The two had discussed PDVSA giving the U.S. super-major greater control over the joint operation in exchange for some debt relief. For now, however, the negotiations are informal because Chevron would need a sanctions waiver to make any formal commitments.
Chevron and PDVSA operate four oil fields together. Before U.S. sanctions, these produced around 200,000 bpd, according to Bloomberg. Now, they are producing around 140,000 bpd, the report also said.
While Chevron has been present in Venezuela for decades and has continued operating in the country under a series of waivers granted by the U.S. federal government, in 2020, the company wrote off its total $2.6-billion investment in the South American country due to the excessive uncertainty around Venezuela’s oil industry.
Last year, after President Joe Biden took office, Chevron lobbied for laxer sanctions on Caracas so it could operate in the country with fewer constraints.
Venezuela, meanwhile, is ramping up oil production despite the sanctions, largely with the help of Iranian condensate that it uses to dilute its superheavy crude. Last year, PDVSa managed to reverse a decline in oil exports, booking a modest climb of 1% in annual exports, most of which went to China, Reuters reported last month.
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Production also increased, with the average for 2021 at around 600,000 bpd, with the December daily jumping to over 800,000 bpd, with one daily spike to 1 million bpd—the closest PDVSA got to its planned ramp-up to 1.28 million bpd for the full year.
It is as part of these production boost efforts that the government in Caracas has become willing to give foreign partners of PDVSA a greater say in the operation of the joint ventures
the U.S. Treasury Department went to great trouble to explain the nub of the point: “Treasury is reiterating ... that energy payments can and should continue.” In its further detailed guidance, just in case any would-be sanctions evader thought that they would have to engage in any tricky manoeuvring to circumvent the wrath of the U.S., the Treasury explained how to use the waiver to continue to deal with a Russian oil or gas company: “For example, a company purchasing oil from a Russian company would be able to route the payment through a non-sanctioned third-country financial institution as an intermediary for credit to a sanctioned financial institution’s customer in settlement of the transaction.” The Treasury concluded: “Treasury remains committed to permitting energy-related payments - ranging from production to consumption for a wide array of energy sources - involving specified sanctioned Russian banks.”
Even in the unlikely event that this extraordinary free-for-all waiver is stopped, the third reason why China and Russia will continue to go about their oil and gas trade – and all other trades – relatively unhindered is that over the past few years they have been securing their own bilateral infrastructural and financial structures for years,
Opening up Venezuela and Iran to petrodollars and becoming best friends with their respective murderous killing dictators new Biden policy.
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