Bye PDVSA. Welcome National Corporaton of Energy?

[jose chalhoub + 388]

This week a proposal by a constituent at the National Constituent Assembly created a polemic in the public opinion in Venezuela: create a National Corporation of Energy, absorbing all the assets of PDVSA, production, personnel and everything else, BUT, getting rid of all its massive debts. Immediately this caused an uproar and critics from many sectors in the country, leading to a theory that PDVSA will be eliminated mainly because of its de facto lack of functionality, crisis of refining, sustained resignation of personnel and inability of raising oil production.

So far this has been a proposal although without any echo on the government side and with a deafening silence prompting many to believe that the government is in fact assuming its defeat in trying to solve this chaos in the oil and gas sector masquerading this with this tool. So far nobody knows how this will be carried out but in the end, shows a sorry state of Venezuela in oil sector and what could potentially be the slow motioned privatisation of PDVSA and the entire sector of energy in Venezuela. 

[jaycee + 348]

6 hours ago, jose chalhoub said:

This week a proposal by a constituent at the National Constituent Assembly created a polemic in the public opinion in Venezuela: create a National Corporation of Energy, absorbing all the assets of PDVSA, production, personnel and everything else, BUT, getting rid of all its massive debts. Immediately this caused an uproar and critics from many sectors in the country, leading to a theory that PDVSA will be eliminated mainly because of its de facto lack of functionality, crisis of refining, sustained resignation of personnel and inability of raising oil production.

So far this has been a proposal although without any echo on the government side and with a deafening silence prompting many to believe that the government is in fact assuming its defeat in trying to solve this chaos in the oil and gas sector masquerading this with this tool. So far nobody knows how this will be carried out but in the end, shows a sorry state of Venezuela in oil sector and what could potentially be the slow motioned privatisation of PDVSA and the entire sector of energy in Venezuela. 

Who owns the debts? Won’t they get upset about not being paid?

[Sebastian Meana + 278]

A partial privatization is the best option imo, that mean 51% to 67% of the shares are government properties, and the next 49% to 33% are private, YPF had to done this in the early 90's when it had just too much unqualified employees, a ton of debt, it was simply loosing money and loosing money, and they decided to sell the 45% of shares to private oil companies, and the private oil companies managed the company while the state just get the dividends and royalties

they used a completely different system to which they had before, in the 70's and 80's unions made YPF accept more than 55000 unnecessary workers from the 14000 they needed, but by 1992 there was 17000 workers and pretty much all of them were highly qualified professionals, and it worked well until menem decided to sell the rest of the shares to Repsol, and repsol just used YPF as a money couch for their bad decisions, taking profits from the argie oil reservoirs to cover their unprofitable reservoirs in south-east asia

and that takes us to the 2012 when they decided to re-nationalize YPF buying 51% of the shares, in my opinion a gamble, because YPF doesn't include just the company, but all of the nationally owned oil and gas reservoir, including the shale-kerogen reservoir which contain nearly 40 to 70 trillion barrels, only Vaca muerta and los Moles are nearly 9 trillion barrels

Yes, PDVSA can be saved while still being mostly nationalized, but it would need a profound re-founding of the company structure, no more unnecessary staff, no more giving "free" gas cylinders, no more subsidized gasoline, no more socialism, and no more doing things they are not made to, basically a state owned company that works just like any private company, and that is pretty much what companies like Rosneft, Gazprom, YPF, Sinopec, Petrochina, or Aramco really are, state owned companies not state propagandist agencies

anyway the cure for a extreme disease isn't the opposite extreme

Edited November 4, 2018 by Sebastian Meana

[Refman + 207]

Venezuela and PDVSA - it sure has been fascinating to watch them unravel. I just wish innocent people were not getting hurt in the process. 

I hope this ends soon, so that they can both start on the long road to recovery.