Are you really paying for this analysis?

People pay for this stuff:

On August 3, Ramírez told reporters that BP’s local assets were ‘very attractive’, an indication the country’s state-run oil company Petróleos de Venezuela (PdVSA) may try to exercise its first option to purchase the company’s assets. PdVSA announced disappointing 2009 financial results on August 2 and may welcome the opportunity to bolster its asset portfolio.

Please do yourself a favor. If you want analysis of what’s going on in Venezuela, hire someone who has spent time in the country and has a sense of the personalities and companies involved. Someone like, you know, some blogger dude on the intertubes

“Disappointing” to whom? The results announced were at least in line with expectations. On accounts payable, much better than expectations; on cost-cutting, they failed.

Ramírez calling something “attractive” is what’s known as a “sales pitch to foreign investors,” not an “expression of interest.”

PDVSA has a lot of things to spend money on. Buying a small stake in a project where they already have an 83% interest, and thereby losing a prestigious foreign investor, is not the company’s priority. PDVSA will buy out Polar Alimentos (Venezuela’s biggest foodmaker) long before buying out BP.

The only thing Ramirez’s comments indicate are that the dude is too damn busy. His own company vice president, Eulogio del Pino, texted a Bloomberg reporter a week ago to say that BP had indeed told PDVSA it was interested in selling. Maybe they haven’t submitted all the right paperwork yet, but that doesn’t mean the sale is off, or that Venezuela will get in the way of the transfer.

Just speaking from a political point of view, the last thing PDVSA or Ramirez want to do is alienate TNK-BP, which is supposed to go invest billions of dollars in the Orinoco Belt.

Amazing when someone can be so wrong that it takes more words to correct them than they used to make their mistake. Congratulations Oil and Gas “Insight”! I wish I could offer you a coveted award.

PS: I went through the other Venezuela stories on their site. Let’s just say I don’t think they have a direct line to Ramirez. In fact I bet their Latam reporter doesn’t know the country code for Venezuela. There’s certainly no sign that s/he has ever tried to call anyone there. Uff.

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3 thoughts on “Are you really paying for this analysis?

  1. phil

    I think you can see how good they are when they lump Africa and the Middle East togther under one heading but have a two seperate ones for Western and “emerging” Europe

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