Venezuela: The truth below
No matter the outcome of October’s elections, Venezuela’s next leader will face growing pressure for private capital to boost the oil sector
By Girish Gupta As Venezuelan bond yields ebb and flow with
the health saga of president Hugo Chávez, who faces his
toughest election yet on October 7, foreign investors are once
again starting to take a closer look at the country's oil
supplies, the largest in the world. They are hoping either for
a change of government or perhaps a wave of pragmatism from
Chávez. This appears to be in the offing with the recent
announcement of a $2 billion financing deal between Chevron and
state oil firm Petróleos de Venezuela (PDVSA). Chevron
will lend the company the money at Libor plus 4.5% over 20
years for their Petroboscan joint venture. The California-based
multinational appears to have placed a bet on Chávez's
continued presidency of Venezuela and has so far avoided the
expropriations that have blighted operations by competitors
such as ExxonMobil and ConocoPhillips. Chávez in turn
appears uncharacteristically to...
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