Economy

Oil giant Venezuela sells pipelines for cash | Financial

Nicolas Maduro’s regime has offered the oil industry increasingly cannibalized by looters and mismanagement to major buyers for scrap.

The country is suffering from a series of sanctions from the United States. State producer Petroleos de Venezuela SA, which operates at half speed due to sanctions and lack of money, is looking for alternatives. In order to be able to pay for major repairs to its pumping stations and compression installations in the important extraction area of ​​Monagas, it wants to settle with the value of the scrap from companies that have stopped working.

Sources in the country report this against Bloomberg news agency. The installations are being dismantled, bidding on batches of metal such as steel, copper and aluminum would be made. The proceeds are used to close financial holes in the treasury.

Gaping hole

This move follows several failed attempts to obtain $ 800 million in financing from suppliers in exchange for oil and other processed fuels, according to staff at the state oil company.

The country has the second largest reserves of crude oil with an estimated value of $ 100 billion. But it now relies on supplies from Iran to help ease its own fuel shortage somewhat.

Venezuelans wait in line for hours every day for petrol and diesel for their cars and households. China and Russia would also be active with fuel transactions to keep the socialist state afloat. Other countries do not dare to cooperate, for fear of sanctions against their companies and politicians from the Americans.

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