LATIN AMERICA ADVISOR

Energy ADVISOR

A daily publication Of the dialogue

May 20, 2022

Will Iran-Venezuela Energy Deals Lead To More Oil Output?

Iran has promised to help the Maduro government repair PDVSA’s oil refineries as part of a package of energy agreements between the two U.S.-sanctioned countries. Venezuela’s Amuay refinery complex, located on the Paraguaná Peninsula, is pictured. // File Photo: PDVSA.

Q

A

Gustavo Coronel, a founding board member of PDVSA: “In Venezuela, there is a popular saying: ‘Los mochos se juntan para rascarse.’ That is, ‘The one-armed get together to scratch each other.’ This is the case with the Iran-Venezuela connection, since both countries are under sanctions and restricted from getting their oil to market. Since both countries have authoritarian governments and share a deep anti-U.S. sentiment, their cooperation is logical. Iran has been providing Venezuela with assistance in the refining process, so far with only modest success, and it has been delivering light oil to Venezuela to mix with its heavy Orinoco oil. Maduro pays for this support with illegally exploited gold, with a heavy cost in terms of environmental degradation and human rights violations. While Iranian support helps to keep the Venezuelan oil industry from imploding, the fundamental problems remain unresolved: Corrupt and incompetent management, a lack of capital investment for new equipment, poor maintenance of existing equipment, a demoralized workforce and…”

Top News

U.S. Reportedly to Ease Sanctions on Venezuela
The Biden administration will ease some sanctions on Venezuela, in part as a move to encourage negotiations between the government of President Nicolás Maduro and the country’s opposition, unnamed U.S. officials said.
Petrobras Sells $1 Bn Worth of Onshore Assets
Brazilian state-owned oil company Petrobras has finalized the sale of $1 billion worth of onshore oil and gas assets and on Monday canceled the sale of four of its offshore concessions.
Peru Sues Repsol for $4.5 Bn Over January Oil Spill
Peru filed a $4.5 billion lawsuit against Spanish firm Repsol for an oil spill in January that damaged coastal areas, INDECOPI executive director Julián Fernando Palacín said.

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ABOUT THE Energy ADVISOR

A sister publication of the Inter-American Dialogue’s daily Latin America Advisor, the weekly Energy Advisor captures fresh analysis from business leaders and government officials on the most important developments in oil and gas, biofuels, the power sector, renewables, new technologies, and the policy debates shaping the future of energy in the Western Hemisphere and beyond. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

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Staff

Gene Kuleta
Editor
P. 202.463.2920
E. gkuleta@thedialogue.org

Carl David
Goette-Luciak
Reporter

Nili Blanck
Reporter

board of advisors

Nigel Blackaby
Global Head, International Arbitration Group,
Freshfields Bruckhaus Deringer

Jimena Blanco
Chief Analyst,
Verisk Maplecroft

María José Cortés
Head of ESG,
Atlas Renewable Energy

Jeffrey Davidow
Senior Counselor,
The Cohen Group

Analia Gonzalez
Leader, Arbitration & Litigation,
Laitn America, BakerHostetler

Jonathan C. Hamilton
Partner,
White & Case

Raul Herrera
Partner, Corporate &
Securities Practice,
Arnold & Porter

James R. Jones
Chairman,
Monarch Global Strategies

Jorge Kamine
Partner, Corporate &
Financial Services,
Willkie Farr & Gallagher

Craig A. Kelly
Senior Director,
Int’l Government Relations,
Exxon Mobil

Jeremy Martin
Director,
Energy Program,
Institute of the Americas

Larry Pascal
Chairman, Americas
Practice Group,
Haynes & Boone

R. Kirk Sherr
President,
Clearview Strategy Group

Daniela Stevens
Director,
Energy Transition and Climate Program,
Inter-American Dialogue

Doris Rodríguez
Partner,
Hunton Andrews Kurth

Alexandra Valderrama
Director,
International Government
Affairs, Chevron

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