August 6: Citgo For Sale

Citgo, a subsidiary of PDVSA responsible for oil refining and marketing in the United States, is for sale.

The announcement was made yesterday by Rafael Ramirez, president of PDVSA. The Venezuelan government is looking to sell the company for at least $10 billion.

Ramirez attempted to justify the sale of the company as a part of a common-sense long-term plan. Ramirez said:

We [PDVSA] are not a refining company. We’re an oil producing company.

Ramirez also went out of his way to downplay fears that the sale is motivated by the severe economic crisis crippling the country, saying:

Our situation is not like many analysts have said, claiming that we need fiscal revenues… we are doing very well with out fiscal revenues in the oil sector. 
(…)
We’re not in any hurry. It’s an important topic, but there’s no urgency. We’ve always had this on our agenda. 

Citgo was founded in 1910 in Oklahoma. It has been under Venezuelan management for the past 24 years. In 1986, PDVSA bought a 50% stake in the company, and the remainder in 1990. It posted sales of $42.3 billion in 2013, earning around $1.8 billion.

Highway Blocked by Protesters

Protesters blocked a stretch of highway connection Charallave with Ocumare del Tuy south of Caracas today. The citizens were protesting the fact that their community has not had access to clean drinking water in a month, as well as a string of violent crimes which has left six people dead in the last few days.

Lopez’s Trial Continues Slow Crawl Forward

The trial of Leopoldo Lopez inched forward slightly today, after a judge once again moved his trial date, this time to August 13. Lopez has been in jail since February 18 on a number of charges, including instigating violence and arson.

One of Lopez’s lawyers, Robertor Marrero, highlighted the frustration felt by the defence in a trial that has been mired in secrecy and Kafkaesque legal maneuvers and red tape. Marrero said:

The logical thing would be for the process to start today, for the witnesses to start taking the stand. Well, their witnesses, because we don’t have a single one, nor do we have video, nor any evidence, nor anything else.

This is the fourth time that Lopez’s trial has been postponed. Previous audiences have been postponed from May 8 to June 2, then June 5, August 6, and now August 13.

As usual, Lilian Tintori – Leopoldo’s wife – and several other opposition figures, including Caracas Mayor Antonio Ledezma, were on site to show their support: