Carlos Camacho, Argus Media

CARCAS
Energiesnet.com 08 07 2023

Canada’s New Stratus says it has signed initial agreements with GoldPillar, a British Virgin Islands-based company, as part of a potential joint venture with Venezuela’s state-owned PDVSA.

Canada’s New Stratus says it has signed initial agreements with GoldPillar, a British Virgin Islands-based company, as part of a potential joint venture with Venezuela’s state-owned PDVSA.

A deal would give New Stratus access through GoldPillar to an agreement with PDVSA  for oil and natural gas assets in Venezuela, the Toronto-listed New Stratus Energy said. Assets would include four onshore fields in Venezuela’s eastern basin where “due to infrastructure erosion and lack of capital investment, production since 2017 has been minimal,” New Stratus said. A deal could be signed by the end of August with initial work to start in October, the company said.

Venezuela’s state-owned oil company PDVSA declined to comment or confirm the talks.

The field would require $709mn in operating expenses and $693mn in capital expenditures to be funded by cash flow under a proposed 27-year contract.

Under the proposal, New Stratus would hold a 50pc equity interest in GoldPillar, which would operate and hold equity positions in joint ventures (JVs) with PDVSA with holdings of 40-49.99pc, “although the intent will be to pursue majority equity positions through ongoing negotiations with PDVSA and as applicable regulations may allow,” the company said.

GoldPillar would fund capital expenditures and operating expenses of the relevant JV in return for essentially payment in oil and products.

PDVSA has joint-partnership agreements with other international companies including Chevron that have been limited in recent years by US sanctions, only relaxed late last year. But companies with business ties in the US still face potential restrictions on paying Venezuela in cash.

argusmedia.com 08 03 2023