Posted on 05/09/2009 9:44:41 PM PDT by givemELL
Economy The current insolvent status of state-run oil holding Petróleos de Venezuela (Pdvsa) due to falling oil prices and declining income has prevented it from paying its debts to contractors and providers. Payment in arrears also reaches mixed companies –former operators- as they have not been paid for oil sales.
Under the agreements prepared by the Ministry of Energy and Petroleum, and entered into by the Venezuelan Petroleum Corporation and domestic and foreign private oil service companies in 2007, upon the conversion of former operational agreements, there is an article which binds mixed companies to sell Pdvsa all their production of crude oil and associated natural gas.
(Excerpt) Read more at english.eluniversal.com ...
It looks like this is the end for the Axis of Hugo then.
If I understand the article correctly, none of the foreign contractors, service providers or “mixed” companies is going to do squat for Pdvsa until they get paid. And it doesn’t look like they’re going to get paid.
Ipso facto, the oil spigot that powers Hugo’s bolivaran Field of Dreams is about to rust shut. I mean no dinero will be forthcoming. Am I correct in assuming his government will screech to a halt? If he can’t even pay his praetorian guard can we assume then that he will be doing the Mussolini dangle in a few weeks?
Communism. Redistribution of wealth. Power to the people. It’s a beautiful thing. You just have to find a way to make people continue to work after you stop paying them.
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