ID:226509
    Date:2009-09-23 14:24:00
    Origin:09CARACAS1246
    Source:Embassy Caracas
    Classification:CONFIDENTIAL
    Dunno:09CARACAS1129 09CARACAS564 09CARACAS581 09CARACAS748 09CARACAS852
    Destination:VZCZCXRO2533
RR RUEHDE RUEHDH
DE RUEHCV #1246/01 2661424
ZNY CCCCC ZZH
R 231424Z SEP 09
FM AMEMBASSY CARACAS
TO RUEHC/SECSTATE WASHDC 3736
INFO RUEHHH/OPEC COLLECTIVE
RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS
RHEHNSC/NSC WASHDC
RHEHAAA/WHITEHOUSE WASHDC
RHEBAAA/DEPT OF ENERGY
RUCPDOC/DEPT OF COMMERCE
RUEATRS/DEPT OF TREASURY
RUMIAAA/HQ USSOUTHCOM MIAMI FL
    
C O N F I D E N T I A L SECTION 01 OF 02 CARACAS 001246 
 
SIPDIS 
 
ENERGY FOR ALOCKWOOD AND LEINSTEIN, DOE/EIA FOR MCLINE 
HQ SOUTHCOM ALSO FOR POLAD 
TREASURY FOR MKACZMAREK 
COMMERCE FOR 4332/MAC/WH/JLAO 
NSC FOR DRESTREPO AND LROSSELLO 
 
E.O. 12958: DECL: 09/21/2019 
TAGS: EPET, EINV, ENRG, ECON, VE 
SUBJECT: VENEZUELA: INSIGHTS FROM PDVSA'S SENIOR EXECUTIVE 
DIRECTOR 
 
REF: A. CARACAS 564 
     B. CARACAS 581 
     C. CARACAS 748 
     D. CARACAS 852 
     E. CARACAS 1129 
 
CARACAS 00001246  001.2 OF 002 
 
 
Classified By: Economic Counselor Darnall Steuart, for reasons 
1.4 (b) and (d). 
 
1. (C) SUMMARY: XXXXXXXXXXXXX  Finally, he confirmed that the Bolivarian Republic of 
Venezuela (GBRV) manipulates its Venezuelan Crude Oil basket 
index by including refined products in the mix.  END SUMMARY. 
 
XXXXXXXXXXX 
--------------------------------------------- --- 
2. (C) Petroleum Attache (PetAtt) interviewed XXXXXXXXXXXXX when 
XXXXXXXXXXX was identified on the visa line by an alert Consular 
Officer. XXXXXXXXXXXXX 
 
3. XXXXXXXXXXXXX
 
XXXXXXXXXXXXX 
---------------------------------------- 
4. XXXXXXXXXXXXX 
--------------------------------------------- ---- 
5. XXXXXXXXXXXXX 
-------------------------------------------- 
6. XXXXXXXXXXXXX 
 
7. XXXXXXXXXXXXX 
------------------------------------- 
8. XXXXXXXXXXXXX 
--------------------------------------------- -- 
9. (C) In response to PetAtt's question about the narrowing 
margin between the Venezuelan crude oil basket price and the 
West Texas Intermediate (WTI) crude oil index from over $13 
in 2008 to less than $5, XXXXXXXXXXXXX explained that the Venezuelan 
crude oil basket was not limited to crude oil, but included 
refined petroleum products.  He added that PDVSA conducted a 
study to verify the basket price, which is maintained by the 
MENPET, and determined that it accurately reflected revenue 
from all of PDVSA's sales of crude petroleum and refined 
products. 
 
10. (C) COMMENT: XXXXXXXXXXXXX spun a convincing narrative regarding 
PDVSA's challenges coming out of the global crash in oil 
prices.  However, his assessment of PDVSA's liability for 
expropriated companies was not compelling and could leave one 
with the impression that PDVSA has no real intention of 
paying for seized oil assets, at least not in the near 
future. XXXXXXXXXXXXX admission about Venezuela's 
manipulation of its crude oil basket price reinforces 
suspicions about the Chavez administration's willingness to 
manipulate official government statistics. 
DUDDY