Venezuela No update on the tolling agreement. It appears that the tolling agreement offered by Maduro’s administration on 30th March 2023 has not seen much progress, and there are no updates in its status. The offer was intended to extend of the statute of limitation for five years or until the U.S. government lifts economic sanctions, in an effort to prevent bondholders from initiating lawsuits before the October 2023 deadline for many Eurobonds issued by Venezuela and PDVSA. This tolling agreement follows the one offered in 2021, which, however, did not receive a required 75% support from the bondholders. With the disbandment of the interim presidency by the 2015 National Assembly, the situation has become even more complex. There is currently no legally recognised Venezuelan government in the US to negotiate with bondholders. The National Assembly has not yet been deemed the holder of the presidency’s authorities, despite the US assurance that it would continue to recognize the 2015 National Assembly as the last democratically elected institution in Venezuela. Without a successful precedent in the U.S. courts recognising the tolling agreement, bondholders will have to rely on the goodwill of a forthcoming new government in Venezuela, which is a risk they may want to avoid. Legal action is a way to ensure that their rights as debtors are enforced. ConocoPhillips In Talks With US, Venezuela to Recover Oil Debt. ConocoPhillips CEO Ryan Lance said the company has been talking with the US Treasury Department about how to recover the roughly USD 10bn debt owed by Venezuela, confirming reports that ConocoPhillips is considering debt-for-oil swap and seeks permission to sell oil from Venezuela in the US. The company is also in discussions with Venezuelan President Nicolas Maduro’s government, Lance told reporters Wednesday after the company’s investor day presentation. ConocoPhillips is owed at least USD 10.3bn as compensation for the 2007 nationalization of oil wells and other assets. Colombia to host international conference on Venezuela on 25th April 2023. Colombia’s government will host an international conference to promote talks between Venezuela’s government and opposition leaders, Colombia Foreign Affairs Minister Alvaro Leyva said. Representatives from around 15 countries in Latin America and Europe are expected to attend. The US will send a representative, but not Secretary of State Antony Blinken. EU also expected to join, Leyva said, without giving details. The objective of the conference is seeking to establish a new negotiating table that includes all opposition and civil society factions as well as broader international community. Venezuela failed to prove the existence of a bias or any other reason for Special Master disqualification. Delaware District Court Judge Leonard Stark issued a Memorandum Order explaining the reason why he denied Venezuela´s motion to disqualify the Special Master designated by the court in the Crystallex v Venezuela case. The judge presents as the first basis for denial that Venezuela did not show bias or any other reason for disqualification in its arguments and that there is no evidence before the Court that the special master “engaged in advocacy” in the OFAC meeting, neither is there evidence that he has advocated for a change in US foreign policy. He also concluded that Venezuela’s motion was a tactical move to delay the procedure. Last week, Venezuela filed a motion to stay the Special Master's involvement in ongoing legal proceedings in the Crystallex v. Venezuela case, pending the resolution of their forthcoming petition for a writ of mandamus with the Third Circuit US Court of Appeals. Citgo completes purchase offer for its secured notes. Citgo Holding Inc, a subsidiary of PDV Holding and an indirect subsidiary of PDVSA has announced the results of its offer to purchase up to USD 407mln of its 9.25% Senior Secured Notes due 2024. The tendered amount reached only USD 13m. Following the purchase, USD 1.35bn in aggregate principal amount of the Notes will remain outstanding. The offer aimed to satisfy the Company's obligation under the Indenture to offer a purchase for cash an aggregate principal amount of up to the Excess Cash Flow Offer Amount of its outstanding Notes. Iranian oil minister arrives in Venezuela to strengthen energy cooperation. The Venezuelan foreign ministry reported that a delegation from Iran arrived in Venezuela, headed by Iranian Minister of Petroleum Javad Owji, who plans to meet with the Venezuelan Government and visit PDVSA, with the aim of strengthening energy cooperation. Over the weekend it was reported that the Memorandum of Understanding was signed with the aim of strengthening bilateral cooperation between Iran and Venezuela in the upstream and downstream sectors of the oil industry. Last June, Venezuela and Iran signed a 20-year cooperation agreement, whose details remain private. In early February, Reuters reported that Iran would begin to work on a 100-day revamp of Venezuela's largest refining complex, the Paraguaná Refining Complex. Issuer Ticker Bid Ask Republic of Venezuela VENZ 13 ⅝ 08/15/18 9.5 10.5 Republic of Venezuela VENZ 7 12/01/18 8 9 Republic of Venezuela VENZ 7¾ 10/13/19 8 9 Republic of Venezuela VENZ 6 12/09/20 8 9 Republic of Venezuela VENZ 12¾ 08/23/22 10.5 11.5 Republic of Venezuela VENZ 9 05/07/23 10.5 11.5 Republic of Venezuela VENZ 8¼ 10/13/24 10.5 11.5 Republic of Venezuela VENZ 7.65 04/21/25 9.5 10.5 Republic of Venezuela VENZ 11¾ 10/21/26 10.5 11.5 Republic of Venezuela VENZ 9 ¼ 09/15/27 10.5 11.5 Republic of Venezuela VENZ 9¼ 05/07/28 10.5 11.5 Republic of Venezuela VENZ 11.95 08/05/31 10.5 11.5 Republic of Venezuela VENZ 9 3/8 01/13/34 10.5 11.5 Republic of Venezuela VENZ 7 03/31/38 10 11 Republic of Venezuela ICSID Claims Call desk for Prices Petróleos de Venezuela SA PDVSA 8½ 10/27/20 24 26 Petróleos de Venezuela SA PDVSA 9 11/17/21 4.5 5.5 Petróleos de Venezuela SA PDVSA 12¾ 02/17/22 4.5 5.5 Petróleos de Venezuela SA PDVSA 6 10/28/22 3 4 Petróleos de Venezuela SA PDVSA 6 5/16/24 4.5 5.5 Petróleos de Venezuela SA PDVSA 6 11/15/26 4.5 5.5 Petróleos de Venezuela SA PDVSA 5⅜ 04/12/27 4.5 5.5 Petróleos de Venezuela SA PDVSA 9¾ 05/17/35 4.5 5.5 Petróleos de Venezuela SA PDVSA 5½ 04/12/37 4.5 5.5 *Indicative price for position with institutional size only. For smaller sizes please call desk.

 

Venezuela

No update on the tolling agreement.

It appears that the tolling agreement offered by Maduro’s administration on 30^th March 2023 has not seen much progress, and there are no updates in its status. The offer was intended to extend of the statute of limitation for five years or until the U.S. government lifts economic sanctions, in an effort to prevent bondholders from initiating lawsuits before the October 2023 deadline for many Eurobonds issued by Venezuela and PDVSA. This tolling agreement follows the one offered in 2021, which, however, did not receive a required 75% support from the bondholders.

 

With the disbandment of the interim presidency by the 2015 National Assembly, the situation has become even more complex. There is currently no legally recognised Venezuelan government in the US to negotiate with bondholders. The National Assembly has not yet been deemed the holder of the presidency’s authorities, despite the US assurance that it would continue to recognize the 2015 National Assembly as the last democratically elected institution in Venezuela. Without a successful precedent in the U.S. courts recognising the tolling agreement, bondholders will have to rely on the goodwill of a forthcoming new government in Venezuela, which is a risk they may want to avoid. Legal action is a way to ensure that their rights as debtors are enforced.

 

ConocoPhillips In Talks With US, Venezuela to Recover Oil Debt.

ConocoPhillips CEO Ryan Lance said the company has been talking with the US Treasury Department about how to recover the roughly USD 10bn debt owed by Venezuela, confirming reports that ConocoPhillips is considering debt-for-oil swap and seeks permission to sell oil from Venezuela in the US. The company is also in discussions with Venezuelan President Nicolas Maduro’s government, Lance told reporters Wednesday after the company’s investor day presentation. ConocoPhillips is owed at least USD 10.3bn as compensation for the 2007 nationalization of oil wells and other assets.

 

Colombia to host international conference on Venezuela on 25^th April 2023.

Colombia’s government will host an international conference to promote talks between Venezuela’s government and opposition leaders, Colombia Foreign Affairs Minister Alvaro Leyva said. Representatives from around 15 countries in Latin America and Europe are expected to attend. The US will send a representative, but not Secretary of State Antony Blinken. EU also expected to join, Leyva said, without giving details. The objective of the conference is seeking to establish a new negotiating table that includes all opposition and civil society factions as well as broader international community.

 

Venezuela failed to prove the existence of a bias or any other reason for Special Master disqualification.

Delaware District Court Judge Leonard Stark issued a Memorandum Order explaining the reason why he denied Venezuela´s motion to disqualify the Special Master designated by the court in the Crystallex v Venezuela case. The judge presents as the first basis for denial that Venezuela did not show bias or any other reason for disqualification in its arguments and that there is no evidence before the Court that the special master “engaged in advocacy” in the OFAC meeting, neither is there evidence that he has advocated for a change in US foreign policy. He also concluded that Venezuela’s motion was a tactical move to delay the procedure.

 

Last week, Venezuela filed a motion to stay the Special Master's involvement in ongoing legal proceedings in the Crystallex v. Venezuela case, pending the resolution of their forthcoming petition for a writ of mandamus with the Third Circuit US Court of Appeals.

 

Citgo completes purchase offer for its secured notes.

Citgo Holding Inc, a subsidiary of PDV Holding and an indirect subsidiary of PDVSA has announced the results of its offer to purchase up to USD 407mln of its 9.25% Senior Secured Notes due 2024. The tendered amount reached only USD 13m. Following the purchase, USD 1.35bn in aggregate principal amount of the Notes will remain outstanding.

The offer aimed to satisfy the Company's obligation under the Indenture to offer a purchase for cash an aggregate principal amount of up to the Excess Cash Flow Offer Amount of its outstanding Notes.

 

Iranian oil minister arrives in Venezuela to strengthen energy cooperation.

The Venezuelan foreign ministry reported that a delegation from Iran arrived in Venezuela, headed by Iranian Minister of Petroleum Javad Owji, who plans to meet with the Venezuelan Government and visit PDVSA, with the aim of strengthening energy cooperation. Over the weekend it was reported that the Memorandum of Understanding was signed with the aim of strengthening bilateral cooperation between Iran and Venezuela in the upstream and downstream sectors of the oil industry. Last June, Venezuela and Iran signed a 20-year cooperation agreement, whose details remain private. In early February, Reuters reported that Iran would begin to work on a 100-day revamp of Venezuela's largest refining complex, the Paraguaná Refining Complex.

 

Issuer	Ticker	Bid	Ask
Republic of Venezuela	VENZ 13 ⅝ 08/15/18	9.5	10.5
Republic of Venezuela	VENZ 7 12/01/18	8	9
Republic of Venezuela	VENZ 7¾ 10/13/19	8	9
Republic of Venezuela	VENZ 6 12/09/20	8	9
Republic of Venezuela	VENZ 12¾ 08/23/22	10.5	11.5
Republic of Venezuela	VENZ 9 05/07/23	10.5	11.5
Republic of Venezuela	VENZ 8¼ 10/13/24	10.5	11.5
Republic of Venezuela	VENZ 7.65 04/21/25	9.5	10.5
Republic of Venezuela	VENZ 11¾ 10/21/26	10.5	11.5
Republic of Venezuela	VENZ 9 ¼ 09/15/27	10.5	11.5
Republic of Venezuela	VENZ 9¼ 05/07/28	10.5	11.5
Republic of Venezuela	VENZ 11.95 08/05/31	10.5	11.5
Republic of Venezuela	VENZ 9 3/8 01/13/34	10.5	11.5
Republic of Venezuela	VENZ 7 03/31/38	10	11
Republic of Venezuela	ICSID Claims	Call desk for Prices
Petróleos de Venezuela SA	PDVSA 8½ 10/27/20	24	26
Petróleos de Venezuela SA	PDVSA 9 11/17/21	4.5	5.5
Petróleos de Venezuela SA	PDVSA 12¾ 02/17/22	4.5	5.5
Petróleos de Venezuela SA	PDVSA 6 10/28/22	3	4
Petróleos de Venezuela SA	PDVSA 6 5/16/24	4.5	5.5
Petróleos de Venezuela SA	PDVSA 6 11/15/26	4.5	5.5
Petróleos de Venezuela SA	PDVSA 5⅜ 04/12/27	4.5	5.5
Petróleos de Venezuela SA	PDVSA 9¾ 05/17/35	4.5	5.5
Petróleos de Venezuela SA	PDVSA 5½ 04/12/37	4.5	5.5

   

*Indicative price for position with institutional size only. For smaller sizes please call desk.