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Exclusive: Rosnefts Sechin flies to Venezuela, contests Maduro over oil transport

WASHINGTON / MEXICO CITY (Reuters) – Chief of Russian oil company Rosneft ( ROSN.MM ), Igor Sechin flew to Caracas…

WASHINGTON / MEXICO CITY (Reuters) – Chief of Russian oil company Rosneft ( ROSN.MM ), Igor Sechin flew to Caracas this week to meet Venezuelan President Nicolas Maduro and complain about delayed oil transportation designed To repay loans, informed two sources about the call on Saturday.

PHIL PHOTO: Rosneft’s Managing Director, Igor Sechin, participates in Russia’s President Vladimir Putin’s conversation with the South Korean President Moon Jae-in at the Kremlin in Moscow, Russia, June 22, 201

8. REUTERS / Sergei Karpukhin / Filfoto

Visits Unpublished , is one of the clearest signs of strain between the victims of crisis Venezuela and its key investor Russia.

Moscow has in recent years been Venezuela’s last resort lender, with the Russian government and Rosneft, which surrender Venezuela to at least $ 17 billion in loans and credits since 2006, according to Reuters estimates.

State oil company PDVSA pays almost all of these debts with oil, but a burnout in the oil industry has left it struggling to fulfill its obligations.

Sechin and a large delegation of managers met with officials at PDVSA at a hotel in Caracas this week. Sechin also met with Venezuelan left-wing Maduro and fooled him for loans underlying the schedule.

“He provided information that showed commitments with China but not with them,” said a source of knowledge about the conversation.

“They run around in PDVSA because of this,” added the source and asked to be anonymous because he was not competent to talk to the media.

The country’s oil production has fallen to only 1.17 million barrels a day, a decrease of 37 percent over the past year, according to reports from secondary sources to OPEC, which makes it difficult to send Russian units about 380,000 bpd as it have agreed to send, according to PDVSA documents seen by Reuters.

The completion of a bridge in Venezuela’s main oil for export of oil, whereby the majority of shipments to Rosneft transit have delayed millions of barrels of crude oil since August.

Sechin gave Maduro a graphic of oil supplies to Russian units compared to China, said the two sources.

Top financier China, which has plowed more than $ 50 billion in Venezuela, also receives compensation in oil.

According to Reuters estimates based on PDVSA data, the Caracas-based company delivered around 463,500 bpd to Chinese companies between January and August, a roughly 60 percent correspondence. It is compared with approximately 176,680 bpd to Russian units, or a 40 percent correspondence.

Rosneft and PDVSA did not respond immediately to a request for comment.

One of the sources of knowledge about Sechin’s visit, as well as two separate sources, said that a Chinese delegation was also in Caracas this week.


From the beginning of 2017, PDVSA began to fall behind after shipments of crude oil and fuel under the loan agreement with China and Russia due to problems in its oil industry, home to the world’s largest raw reserves, according to documents reviewed by Reuters.

The issues include operational accidents, such as refining and late tank cleaning, and financial disputes with service providers paid money from PDVSA.

In April, Rosneft and PDVSA signed a refinancing agreement aimed at enabling the Venezuelan company to retrieve late loan payments by delivering more crude oil to Rosneft. During refinancing, PDVSA must provide Rosneft with approximately 380,000 bpd, up from approximately 310,000 bpd, according to Reuters estimates.

The Russian company planned to use José’s southern dock to pick up the load before an August tanker collision delayed exports to Rosneft. PDVSA resumed dock earlier this month, sources said.

China agreed to use Ship-to-Ship operations (STS) to avoid Venezia’s clogged ports. The clients to whom Rosneft sends Venezuelan raw, Russian-baked Indian refinery Nayara Energy and Indian conglomerate-related, however, did not agree on STS transfers, likely increased delays.

Further reporting by Corina Pons, writing by Alexandra Ulmer; Editing Susan Thomas

Our Standards: Thomson Reuters Trust Principles.

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