PdV sets up new oil ports subsidiary

Venezuela's state-owned PdV has set up a new ports subsidiary to consolidate control over its deteriorated oil terminals, the latest initiative in a corporate restructuring.

Under an 11 May presidential decree, PdV Puertos has been granted administrative and operational control over the terminals, including Cardon and Amuay on the Paraguana peninsula, El Palito in Carabobo state, Jose and Guaraguao in Anzoategui state, and Bajo Grande and Puerto Miranda on Lake Maracaibo.

PdV Puertos was created to address operational problems such as oil smuggling and corruption, piracy, accidents and dilapidated loading and unloading infrastructure and storage, a Venezuelan oil ministry official told Argus.

Decree No. 4,197 names national guard major Abraham Escola as acting general manager of PdV Puertos, reinforcing a trend of military appointments to strategic posts.The new subsidiary will report directly to PdV's marketing and supply vice president Antonio Jose Perez Suarez, a former army major.

Escola previously headed Bolipuertos, a state-owned Venezuelan-Cuban joint venture which since 2009 controls all non-oil commercial ports in Venezuela.

The decree assigns the new subsidiary broad administrative powers that suggest it could eventually absorb the tanker operations of PdV's longtime shipping subsidiary PdV Marina.

PdV Puertos is authorized to act as an agent for national and international shipping companies, acquire equity stakes in local and international firms that manage and operate oil terminals, develop storage facilities for import/export cargo in Venezuela and internationally, provide multimodal port services including the loading and unloading of tankers, and supply security services at all terminals and smaller port facilities in Venezuela.

Venezuela set up the new ports subsidiary weeks before the arrival of gasoline cargoes from Iran, another target of US sanctions.

A presidential commission appointed in February and tasked with restructuring PdV was chaired by industry minister Tareck El Aissami, who was later named acting oil minister. His co-chair was Asdrubal Chavez, who is now acting PdV chief executive.

Preliminary commission recommendations issued in late April would streamline PdV and encourage outside investment.