Article in today’s Wall Street Journal about how US and Venezuelan authorities are looking into sales of oil products by PDVSA which cost the company tens of millions of dollars in potential revenues and may have violated US laws. Some highlights:
“In the chaotic months following a crippling oil-workers strike in Venezuela early this year, U.S. and Swiss oil-trading firms were given favorable treatment by executives” “With the company in turmoil, PdVSA’s commercial department, which markets the company’s production, engaged from March to September in several deals to sell fuel oil that cost the company millions of dollars in potential revenue, according to more than 400 pages of internal documents. The documents show that certain PdVSA managers awarded contracts for oil products to certain traders even when their bids were lower than those of rival bidders. In some cases, PdVSA cargoes were inexplicably sent to less-profitable destinations, while in others, company managers changed cargoes’ destinations without authorization.”
“PdVSA’s own security department, which conducts internal investigations of thefts and losses, estimated that $80 million in potential revenue was lost in March alone because of unfavorable deals, one internal document showed.”
“In a June 30 letter to President Chavez, the company’s internal-security management noted that the sale of two million barrels of fuel oil to China’s state-owned PetroChina Fuel Oil Co. produced a loss in revenue to Venezuela of $2.8 million compared to a better offer from BP PLC. The letter blamed Nelson Reyes, who headed the supply-and-marketing division, for allowing the deal to happen.”
As usual, nobody has been charged, is in jail or is being accused, in fact, the same article indicates that Mr. Reyes has been reassigned to Europe……
The Devil's Excrement 
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