1 INTERNATIONAL LAW FIRM LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS Aurelio Fernández- Concheso Caracas Stirling Leech London
Dec 27, 2015
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INTERNATIONAL LAW FIRM
LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS
Aurelio Fernández-ConchesoCaracas
Stirling LeechLondon
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April 11, 2002: Protesters marching in Caracas
INTERNATIONAL LAW FIRM
LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS
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April 11, 2002: Shootings around Presidential Palace
INTERNATIONAL LAW FIRM
LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS
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April 11, 2002: Government supporters shooting from Llaguno’s bridge against protesters and police officers
INTERNATIONAL LAW FIRM
LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS
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April 12, 2002: General Lucas Rincon and High CommanderOfficers announce Chavez’s resignation to the Presidency
INTERNATIONAL LAW FIRM
LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS
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INTERNATIONAL LAW FIRM
LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS
Interim Government led by Pedro Carmona
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April 14, 2002: Chavez returns to power after failure of the Interim Government lead by Pedro Carmona
INTERNATIONAL LAW FIRM
LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS
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INTERNATIONAL LAW FIRM
LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS
October 22, 2002: Legitimate Disobedience
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INTERNATIONAL LAW FIRM
LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS
December 02, 2002: National General Strike
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INTERNATIONAL LAW FIRM
LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS
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INTERNATIONAL LAW FIRM
LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS
December 04, 2002: PDV Marina joins the General Strike
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INTERNATIONAL LAW FIRM
LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS
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PDVSA’s Operational Report on 14th January:
Oil Production (Thousands of Barrels/day)
Normal Value
Current Value
3280
413
87 % closed down
Gas Compretion (Millions of cubic feet/day)Normal Value
Current Value
9400
2819
70 % closed down
Gas Production-Anaco (Millions of cubic feet/day)
Normal Value
Current Value
1800
850
53% closed down
INTERNATIONAL LAW FIRM
LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS
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PDVSA’s Operational Report on 14th January:
Oil Refining (Thousands of Barrels/day)
0
200
400
600
800
1000
1200
1400
Normal Value Current Value
Isla
Paraguana
El Palito
PLC PLC
1264
75*
94% Closed Down
* PLC is currently operating at 38% of its total capacity of 120 thousands barrels/day
INTERNATIONAL LAW FIRM
LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS
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Oil spill in Lake Maracaibo (Jan.2003)
INTERNATIONAL LAW FIRM
LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS
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INTERNATIONAL LAW FIRM
LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS
Explosion at El Palito Refinery
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INTERNATIONAL LAW FIRM
LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS
PDVSA’s Risk Profile
Property Insurance: 5 MM $ (deductible)
20 MM $ (PDV Insurance Bermuda)
Values at Risk: 25,000 MM $
Estimate Maximum Loss: 800 MM $
Loss of Income: No Cover
Renewal:
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INTERNATIONAL LAW FIRM
LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS
Potential Insurance issues regarding PDVSA
Cover: Might be challenged (No renewal ?)
Due Diligence: In General terms, the Company is not being operated by dully qualified personnel
Mitigation of damages: There is no SHA team available to face a
potential loss at the Refineries and Production facilities
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INTERNATIONAL LAW FIRM
LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS
Potential Insurance issues regarding Private Operators
Cover: Loss of income is normally included in their policies
Proximate Cause: Migh be challenged: Strike, Stoppage, Civil Disobedience or Sabotage ???
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INTERNATIONAL LAW FIRM
LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS
Other potential claims in the Energy Sector:
- Consequential damages in relation to supply agreements.
- Breach of Contracts (Supply agreements of Oil and derivatives).
- Loss of opportunity by PDVSA’s customers abroad.
- Financial liabilities for those companies involved in production activities in the Orinoco Belt (Apertura Petrolera).
- Financial liabilities that may be incurred by PDVSA’s subsidiaries and PDVSA’s joint ventures in Venezuela and abroad.
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INTERNATIONAL LAW FIRM
LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS
- Property damages (Plants, Refineries, Production facilities and other equipment).
- Strike or Sabotage ???
- Environmental damages for oil spillage in Maracaibo Lake.
- Execution of Letter of Credits.
Other potential claims in the Energy Sector (cont...):