Secrecy and confusion surround venezuela’s latest oil deals

Secrecy and confusion surround venezuela’s latest oil deals

Venezuela’s newly created and military run oil and mining company Camimpeg has formed a joint venture with UK-based Southern procurement Services (SPS) to reactivate shut-in wells in Lake maracaibo in Zulia state.
The deal has raised eyebrows, given its scale and the relative inexperience of the parties concerned. A supply with information of developments and who has operations in the lake told NewsBase the well count may approach one,500.
Given their lack of expertise, queries are asked concerning whether the jv partners have the requisite personnel or capital to pull off the work. Indeed, the fact the companies have even been allowed to team up is startling.
SPS and Camimpeg, that was created in february to protect petroleum installations belonging to state-run PDVSA, recently formed Camimpeg-SPS to “improve the oil and gas production method for PDVSA,” the jv tweeted last week.
In the most recent of only 3 press releases available in the news section on its web site, England-based SPS, that is a component of the SCZ cluster monetary cluster, reported that it was engaged in activities to supply “electric submersible pumps” as a part of trade initiatives “to ensure increased productivity at Venezuelan oilfields”. It went onto say the company has “the firm intention to continue providing quality service to PDVSA.” No different SPS press releases talk about its dealings in venezuela or any other countries.
Camimpeg was conjointly created partly to supply oilfield services to PDVSA, with a read to it replicating the activity of companies like Schlumberger, Halliburton or Weatherford. however Venezuelan President Nicolas Maduro is believed to have created the rookie company, that is run by the armed forces, to keep the military happy and loyal as Venezuela’s economy collapses.
Camimpeg-SPS conjointly recently signed a deal to acquire a fleet of vehicles that will be used to maintain a constant presence over PDVSA’s operating areas.
Financing for each deals is likely to come from SCZ cluster, that provides “special financing mechanism that allows customers to pay for purchases of oil products, petrochemical industries and basic industries,” according to statements on its web site.