Looking for money: Venezuela to seek new loans from Japan
PDVSA seeks new loans from Japan
Venezuelan energy giant PDVSA continues to seek funds and will try to borrow money from Japanese entities, said industry sources.
Venezuelan President Rafael Ramirez will visit Japan to request new loans amidst a severe financial restriction in the state-owned oil company.
According to industry sources, the approval of funding could be affected by the nationalisation of several briquette companies last week, as a Japanese company is a majority shareholder in one of the nationalised company, said a report from El Universal newspaper.
Comsigua, whose nationalisation was announced by President Hugo Chavez, is owned by Kobe Steel (60%), Ferrominera del Orinoco (22%) and the remainder is shared between Techint and Marubeni.
PDVSA signed in April a memorandum of understanding with Japanese bank JBIC, Mitsubishi and Itochu for a $1.5 billion loan to upgrade two refineries.
This fund has not yet been activated, according to several spokesmen.
In 2007, the Japanese entities had provided a $3.5 billion credit line to PDVSA.
The Venezuelan oil industry requires more resources due to a decline of revenues produced by the sale of crude oil, which in the first quarter fell 55%.
In addition to decreasing funds, there has been an increase of obligations to service suppliers, which totaled at the end of last year, $13.8 billion.