Venezuela watch: PDVSA to fight Crystallex seizure bid, financial results, Perenco interest

Venezuela has vowed to block an attempt by Canadian miner Crystallex to seize shares in a US-based subsidiary of state oil company PDVSA.

Crystallex on Monday asked a US district court for an order to attach shares in Delaware-based PDV Holding, which controls refining and marketing company Citgo Petroleum. Citgo owns three refineries and a network of terminals and pipelines.

The request came after the Venezuelan government refused to accept a World Bank arbitration court ruling ordering the country to pay US$1.39bn to Crystallex in compensation for the expropriation of the Las Cristinas gold project.

"[This] attempt ... is totally inappropriate and the corporation will take all necessary legal actions to protect its assets against such attacks," PDVSA said in a statement.

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Meanwhile PDVSA reported a sharp drop in 2016 earnings, battered by lower production and an ongoing oil price downturn.

Net profit fell to US$828mn from US$7.3bn the previous year, the company said in a 2016 full-year report.

PDVSA said average 2016 crude production, including gas liquids, fell to 2.57Mb/d from 2.9Mb/d a year earlier.

In addition to a three-year oil price slump, which has drastically reduced its revenue, PDVSA has suffered from Venezuela's severe economic and political crisis.

Despite holding the world's largest crude reserves, total Venezuelan oil output has fallen by more than 500,000b/d since 2015, according to OPEC.

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In related news, France's Perenco has expressed interest in ramping up investment in Venezuela, according to the latter's state media.

Perenco and PDVSA executives this week discussed plans to expand production at Lago de Maracaibo and create a new mixed capital company with the participation of local state-run petrochemical firm Pequiven, AVN reported.

The Paris-based company has a 40% stake in Venezuelan operators Petrowarao and Baripetrol, with PDVSA holding the balance.