Venezuela: 49% Deal "Not Convenient"

cobraboy

cobraboy

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Noticias - DiarioLibre.com

I guess cashflow is a little tight for Hugo. He dumps the 49% petro deal with the DR.

I wonder if he'll start calling in the loans for his oil. The guy needs hard currency.
 
SantiagoDR

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Maybe he got peeved at Leonel for speaking "American English" and not "Latin America Spanish" in the interview on Haiti.
 
SantiagoDR

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... or maybe Hugo is not happy about Leonel getting Zelaya out of Honduras, it was not what Ch?vez wanted to happen.
Ousted Honduran President Jose Manuel Zelaya will be granted safe passage to the Dominican Republic as a guest, resolving a diplomatic impasse that kept him trapped in Honduras, Dominican Republic President Leonel Fernandez said Wednesday.
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A.Hidalgo

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cobraboy said:
Noticias - DiarioLibre.com

I guess cashflow is a little tight for Hugo. He dumps the 49% petro deal with the DR.

I wonder if he'll start calling in the loans for his oil. The guy needs hard currency.
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The DR refinery deal is peanuts compared to the refinery deal with China. Like Santiago DR indicated this was a political move.

BEIJING, Jan 21 (Reuters) - China has given the greenlight to a giant $6-billion joint venture refinery between state energy firm CNPC and Venezuela's state oil firm PDVSA, a key step that will further cement energy ties between Beijing and Caracas.
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EXCLUSIVE-China, Venezuela refinery gets Beijing's nod-UPDATE 2 18:06 Hours ago
 
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A.Hidalgo

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Pacto con Lobo distancia a Ch?vez de Leonel Fern?ndez

Surfing around I happened to find this article that pretty much states that this was a typical political reaction when Hugo is not happy with stuff.

SANTO DOMINGO, 21 de enero 2010.-.-Un d?a despu?s que el presidente Leonel Fern?ndez suscribiera un acuerdo con el presidente electo de Honduras, Porfirio Lobo, trasciende en Venezuela que el gobierno de ese pa?s no esta interesado en adquirir el 49 por ciento de la Refiner?a Dominicana de Petr?leo ?Refidomsa.
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Pacto con Lobo distancia a Ch?vez de Leonel Fern?ndez :: Economia :: DiarioDigitalRD.com - Noticias Republica Dominicana
 
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Lambada

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A.Hidalgo said:
You just might be right. Leonel's apparent recognition of Lobo pi**ed Hugo. Payback.....
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It isn't just 'apparent' recognition of Lobo, it's actual recognition.
Leonel reconoce al nuevo gobierno hondure?o
In particular, for months Leonel condemned the coup government. By now recognising the winner of an election organised by said government, he has done an about face. So...........so has Hugo.

If this was an economic move as opposed to a political one, why, for example, has the CITGO-Venezuela Heating Oil Programme just started its fifth season in NY city? See page 3 of
Correo del Orinoco in English.
 
O

Ogre of the Caribbean

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Leonel has been playing both sides for a long time(and why not), trying to gain as many advantages as possible for the Dominican Republic. Now with the Americans rolling into Haiti with 10,000 soldiers and a naval flotilla, Leonel is shifting to the most advantages position.

I wonder if the Haiti operation signals a serious American drive back into Latin America? Is this just part of a larger initative?And I don't mean military invasions but a serious drive to re-engage the region?
 
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Lambada

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There's a piece in El Nacional which suggests that Hugo has backed out of the Refidomsa deal because of Leonel's recognition of Porfirio Lobo, as suggested above, but also because last week, apparently, Leonel decreed Gustavo Cisneros a Dominican citizen and Hugo has frequently accused Cisneros of conspiring against him from outside of Venezuela, it says.
Ch?vez se aleja de Leonel
 
cobraboy

cobraboy

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I just hope that Hugo's anger doesn't extend to cutting off the uber-sweet deal on fuel, or call loans...in cash, not in beans. THAT would cause some cash flow problems for the DR gubmint.
 
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A.Hidalgo

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The Dominican government has not received any "official" word from Venezuela, so as far as they are concerned this deal for the moment is not dead. Don't you just love the workings of politics.:cheeky:

SANTO DOMINGO. ? Treasury minister Vicente Bengoa on Friday said the Dominican Government hasn?t been officially notified of Venezuela alleged discarding the purchase of a 49 percent stake in the Dominican Republic?s only refinery Refidomsa.
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http://www.dominicantoday.com/dr/ec...notify-disinterest-in-Dominican-refinery-deal

Santo Domingo.- El gobierno dominicano no ha descartado las negociaciones con el gobierno de Venezuela para adquirir el 49 por ciento de las acciones de la Refiner?a Dominicana de Petr?leo (Refidomsa), porque el Estado venezolano no a notificado su desinter?s por la operaci?n comercial.
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La Rep?blica - Gobierno dominicano espera la nota oficial de Venezuela
 
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ExtremeR

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cobraboy said:
I just hope that Hugo's anger doesn't extend to cutting off the uber-sweet deal on fuel, or call loans...in cash, not in beans. THAT would cause some cash flow problems for the DR gubmint.
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That's the biggest worry, Leonel somehow miscalculated this play. I don't have any idea why. He didn't have anything to gain by acknowledging Lobo at this moment. Let's see how this play out con el loco de Chavez.
 
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? bient?t

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Folks, is this how economists analyze politics?

"Ch?vez is upset with Leonel, so he says 'no deal' and wants his money back."

How can we ever take economists serious?
 
cobraboy

cobraboy

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? bient?t said:
Folks, is this how economists analyze politics?

"Ch?vez is upset with Leonel, so he says 'no deal' and wants his money back."

How can we ever take economists serious?
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As several grad school econ profs preached, you CAN'T take political economists seriously.

But it sounds like that is exactly what Chevez is saying.

I just hope there are some back-channel discussions with non-Venezuelan oil producers on a deal should Hugo decide to turn off the free-money oil spigot.
 
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el forastero

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May also be a better idea to get it in writing before you turn your Publicists loose in the Dominican media proclaiming the latest "wonderful" thing you just did for your "people".

In the absence of a signed, ironclad contract, there is "no deal". If there is a contract, then it's an issue for an international court. If Chavez is trying to turn his focus on screwing other countries instead of just his own people or VZ private businesses, then it's time to show him just how impotent he is outside the reach of his armed thugs.
 
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el forastero

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anyone want to bet that someone in the Dominican government has already spent this anticipated inflow of cash?
 
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