Venezuela hurtles toward electoral abyss

  • Market: Crude oil, Oil products
  • 09/06/20

The two sides in Venezuela's protracted political conflict are racing to name new electoral authorities in anticipation of key National Assembly elections that could determine the fate of US-backed opposition leader Juan Guaido.

Venezuela's US-sanctioned government already took a key step toward stripping Guaido of his constitutional claim to an interim presidency that is recognized by dozens of Western countries. In a 26 May ruling, the country's rubber-stamp supreme court ratified a parallel assembly leadership headed by Luis Parra, who received the written ruling today.

Guaido's leadership of the assembly, considered Venezuela's last democratic institution, underpinned his January 2019 declaration of an interim presidency, with the ambitious goal of forcing President Nicolas Maduro to step down.

"If Guaido is not legitimately the National Assembly president in 2020, then he cannot constitutionally maintain his self-proclaimed fiction that he is the constitutional interim president of Venezuela," a presidential palace official told Argus.

Parra, who was expelled from the opposition Primero Justicia party (PJ) in December 2019 for allegedly participating in a vote-buying scandal, caucused with the government's United Socialist Party (PSUV) minority in the legislature in January to claim the assembly presidency in a military-backed maneuver that prevented most of Guaido's supporters from casting any votes. Russia, Maduro's main foreign patron, recognized Parra's victory.

A Parra aide tells Argus the new assembly leadership's first priority is to secure supreme court support to appoint a new electoral council board (CNE). A new board would then move to organize assembly elections that are constitutionally mandated to take place by December.

The elections could be held earlier to "expedite the legislature's return to its normal deliberative status," Parra's aide said.

The loss of Guaido's constitutional claim means all of his "ad hoc" diplomatic and state-owned corporate appointments "are now also null and illegal" the aide added, referring specifically to exile boards of Venezuela's national oil company PdV and its US refining arm Citgo.

The Guaido-led assembly, which was forced to meet at remote locations outside of the legislative palace after January and now meets virtually because of coronavirus restrictions, today reaffirmed its own plan to name a new CNE board through a committee of 11 deputies and 10 civil society members.

"Any electoral authority that is not named by the legitimate National Assembly will be rejected and unrecognized by Venezuela and the democratic world," the assembly said today.

But the opposition, comprised of four political parties, is divided over whether to participate in the elections at all, unless free and fair conditions can be guaranteed. Maduro won a second term in Venezuela's last election in May 2018, a process that was widely deemed to be fraudulent.

The US, which imposed oil sanctions on Venezuela shortly after Guaido claimed the interim presidency, blasted what it called the "sham" court ruling last month.

"Maduro is counting on a distracted international community to overlook this move to further destroy Venezuelan democratic institutions and consolidate power," the State Department said. "Parra and his gang have forsaken their representation of the Venezuelan people and instead represent the regime's corrupt inner circle and their misguided quest to maintain power."


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17/04/24

South Sudan eyes Dar Blend export restart in 6-8 weeks

South Sudan eyes Dar Blend export restart in 6-8 weeks

London, 17 April (Argus) — South Sudan aims to restart exports of its heavy sweet Dar Blend crude grade within six-eight weeks as it works to repair a pipeline in war-torn Sudan, finance minister Awow Daniel Chuang told Argus . Problems along the Petrador pipeline since February have prevented around 100,000 b/d of South Sudan's Dar Blend from reaching Sudan's Bashayer terminal on the Red Sea for export. This has seen South Sudan's crude production almost halve to around 80,000 b/d because of a lack of alternative outlets for the grade. But production of the country's medium sweet Nile Blend grade continues as it is transported to Bashayer through the separate Greater Nile oil pipeline. Landlocked South Sudan is entirely reliant on Sudan to export its crude and depends on oil sales for more than 90pc of government revenues. Chuang, a former oil minister, said work to repair the pipeline was progressing well despite logistical challenges, and that unless something unforeseen happened, flows "should resume" within six-eight weeks. The pipeline has suffered from gelling issues — solidifying crude — leaks and pressure drops for months. One key issue has been a lack of diesel, which is typically used to heat the crude or dilute it to help it flow. Repairs have been complicated by the civil war in Sudan, pitting the army against the paramilitary Rapid Support Forces. The conflict passed the one-year mark on 15 April, with no end in sight. While production and exports in both Sudan and South Sudan held up surprisingly well at the start of the conflict, problems have begun to pile up over the past few months. South Sudan is sending diesel to Sudan because of the closure of the 100,000 b/d Khartoum refinery, which has come under repeated fire. Sudan typically produces around 50,000 b/d of mostly Nile Blend crude, but this is thought to have been impacted by the civil war. Argus assessed Sudan's crude output at 20,000 b/d in March. South Sudan's crude production was trending at around 150,000 b/d before the pipeline outage. Argus assessed South Sudan's crude output at 80,000 b/d in March. Crude exports from Sudan's Bashayer port averaged 130,000 b/d in 2023 and stood at 168,000 b/d in January, according to Kpler. But exports have only averaged about 65,000 b/d since February. South Sudan's crude production stood at around 300,000 b/d in the first few months following its independence from Sudan in 2011. It has a short-term target to grow output to 230,000 b/d and 450,000 b/d in the longer term — something the country's leaders acknowledge will require political stability and a surge in foreign investment. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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TotalEnergies rows back on Uganda oil project timeline


17/04/24
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17/04/24

TotalEnergies rows back on Uganda oil project timeline

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Nigeria's Dangote diesel offers cut local prices


17/04/24
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17/04/24

Nigeria's Dangote diesel offers cut local prices

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EPS to register six ammonia-powered newbuilds with SRS


17/04/24
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17/04/24

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Singapore's MPA, IEA unite on maritime decarbonisation


17/04/24
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17/04/24

Singapore's MPA, IEA unite on maritime decarbonisation

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