In addition to the exclusive information from infodio regarding joint services and purchase agreements signed between PPSA and EREPLA Services LLC, responses were received to the request for comments sent to Harry Sargeant from Ali Hasan Rahman (see below). According to Hasan Rahman’s comments, the OFAC has the final say on the agreement.
“As the director of EREPLA Services LLC and EREPLA Trading LLC, I would like to respond to the email you sent to Mr. Sargeant last week.
In response to your specific questions:
1. We firmly believe that it is in the interest of the U.S. for an American company to partner with PDVSA in developing Venezuela’s oil reserves. We find that PDVSA’s leadership is open to finding effective solutions and new models to stop the dramatic decline in oil production, prevent corruption, and get Venezuelan oil workers back to work. This openness includes the welcome return of U.S. oil companies under terms consistent with those offered by their PDVSA counterparts and that are legal under U.S. and Venezuelan laws.
2. The joint service agreement is only effective upon receiving a specific OFAC license. To that end, we have already made a formal submission to the U.S. Department of Treasury to obtain such a license and are committed to working with U.S. regulators to achieve a positive outcome.
Please let me know if you have any further questions.”
This site sent more questions, of course (attached below), the answers of which will be published if/when received.
Dear Mr. Rahman,
Thank you very much for your responses. It is a real pleasure to deal with American companies, after nearly two decades of “efforts” by the Chinese and Russians, which failed spectacularly to increase production levels and never responded to the request for comments!
However, I have additional questions.
You state that the terms offered, a de facto 50.1-49.9 partnership in services/purchase agreements, are “proportionate to those offered by your PDVSA counterparts.” Which counterparts are you referring to?
Given the wording of the contracts, subjecting PPSA’s contractual duties to OFAC prerogatives and U.S. sanctions, what kind of due diligence has EREPLA had to undergo with Treasury in its license application?
What periodic checks will the Treasury/OFAC conduct on the joint services/purchase agreements once the license is granted?
What reporting requirements are imposed on EREPLA?
Do you have an estimated date when the license will be granted, considering the U.S. government shutdown?
Will two licenses be granted or just one for both contracts?
An EREPLA entity was formed in Malta, a day before incorporating EREPLA in Delaware, just a day before PPSA’s CEO, Quevedo, signed the joint services agreement with EREPLA Delaware (November 9). Is that the UBO of the Delaware entities?
Are there any Venezuelan interests, like Wilmer Ruperti, involved in any of the EREPLA entities?
How much investment is EREPLA planning to boost production in the “development plan area”?
Could you comment on the projected/estimated production levels over the next 12/24/48 months?
Are there any additional incentives, like expanding the designated area, that will be given to EREPLA based on successful production increases?
Venezuelan sources have claimed that EREPLA has been exempt from paying royalties. Is this true?
I would greatly appreciate it if you could send your comments on the above.
Sincerely,
alek boyd