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Petro to be affected by new Venezuela oil deals? Maduro’s move awaits judgement

Akash Anand



Petro to be affected by new Venezuela oil deals? Maduro's move awaits judgement
Source: Unsplash

Venezuela is back in the news again with President Nicolas Maduro, who has decided to link Petro with their national currency, announcing that a total of seven oil fields present in the country will be given to almost 14 companies to increase oil output.

Reports have shown that fluctuations in the oil spectrum of a country so affected by hyperinflation will result in a massive shift in their new currency, the Sovereign Bolivar. The newly adopted Petro Dollar first came into the limelight in December 2017 when the Venezuelan government released a whitepaper on it, with plans to link the NEM based cryptocurrency to oil barrels to uplift the already crumbling economy.

Maduro’s latest efforts is also a reversal of former Venezuelan President Hugo Chavez’s strict policies that curbed private oil sales in the country. The firms that are involved in the new governmental partnerships are Italy’s Eni, Total based in France and five Venezuelan companies: Petrokariña, Enfriadores de Venezuela C.A., Consorcio Rinoca Centauro Kariña, Well Services Cavallino, and Consorcio Petrolero Tomoporo.

Till now, the state’s oil reserves were controlled by the infamous PDVSA, Venezuela’s own petroleum organization. Some reports have also suggested that the reason why the community has given up on the organization is because of the rampant complaints of insider trading and involvement of state officials with nefarious activities. The same PDVSA has now come to the forefront by taking charge of the new companies involved in the partnership by:

  • Giving the companies a 6-year quota to boost sales and production
  • Asking them to establish contracts to increase output and ensure proper payments

Manuel Quevedo, the President of PDVSA said:

“During the 28th August event the overall plan for the new tie ups was calculated to be around $430 million in investment and a production increase of 641,000 barrels per day (bpd). The terms of the deals will be revealed later.”

The new tie-ups come in the wake of recent reports that showed that there were some glaring loopholes in the establishment of Petro in Venezuela. The initial affidavit on Petro stated that the cryptocurrency would be linked to oil barrels but later investigations revealed that there was a severe lack of investments, amounting to almost $20 billion. An on-ground survey conducted by Reuters stated that:

“None would identify themselves. One complained of being “scammed.” Another told Reuters he had received his tokens without a problem; he blamed U.S. sanctions against Venezuela and “awful press” for hurting the petro’s debut.”

The new oil tie-ups are set to shake up the allocated 5 billion barrels of oil that are used to give value to Petro. Experts believe that it will still be some time before Petro can come to the forefront as a tradeable currency.

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Engineering graduate,crypto head and Arsenal fan. Is fascinated by technology and all its marvels. Strictly against pineapple on pizza.


John McAfee says he will reveal Nakamoto’s identity, Coinbase expands to 11 countries, and more





John McAfee says he will reveal Nakamoto's identity, Coinbase expands to 11 countries, and more
Source: Unsplash

Daily Crypto News – April 18

1. John McAfee on Satoshi Nakamoto: The Founder of McAfee Associates stated that he would narrow down on the identity of Satoshi Nakamoto until he reveals Satoshi himself, otherwise he would reveal his identity to the crypto community. He also spoke about how he knows about Satoshi, to read about it, click here!

2. Coinbase expands its services to more countries: The leading exchange platform announced that it expanding its services to 11 more countries, which includes India, South Korea, and New Zealand. People in these countries can avail services provided on, Coinbase Pro and its app on iOS and Android.

To know more about the countries Coinbase has expanded to, click here!

3. Craig Wright says the crypto-community want to silence him: Craig Wright, the self-proclaimed Satoshi Nakamoto, stated that the majority of the community was against him as they “desire to silence” him because they see someone who would bring an end to scams and pumps and dumps.

He also spoke about the next steps he would be taking in terms of the legal action concerning his defamation case. To read about it, click here!

4. Binance “marks the birth of a new genesis block”: The largest cryptocurrency exchange in terms of trade volume announced the launch of its Decentralized Exchange, and also stated that the mainnet swap would take place on 23 April 2019.

To read more about Binance DEX, click here!

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