New Stratus Energy signs MOU with GoldPillar for partnerships in Venezuela

New Stratus Energy

02/08/2023 18:40

Aug 2 (Reuters) - New Stratus Energy  NSE.V  said on
Wednesday it had signed a memorandum of understanding with
private equity firm GoldPillar International Fund, which could
give the Canadian company access to partnerships in negotiation
with Venezuela's PDVSA. 
    GoldPillar, a firm incorporated in the British Virgin
Islands, aims to partner to develop four onshore fields in
Venezuela's eastern region, the output of which has been minimal
since 2017.    
    According to the preliminary agreement, New Stratus would
hold a 50% equity interest in GoldPillar, which will in turn
hold positions in joint ventures with PDVSA ranging from 40% to
49.99% in a first stage of partnership.
    "The intent will be to pursue majority equity positions
through ongoing negotiations with PDVSA," New Stratus said in a
release.
    GoldPillar plans to provide the cash required to fund
capital expenditure and operating expenses. Those advances would
be reimbursed through the allocation of crude oil and products.
    Any funds supplied by GoldPillar would be provided by New
Stratus Energy as shareholder. Such financing will be repaid
prior to the distribution of any dividends to GoldPillar's
shareholders.
    All proceeds from oil sales managed by GoldPillar will be
used to reimburse capital expenditure and operational costs, and
to pay dividends.    
    "The current business case of these fields calls for
infrastructure improvements and to begin producing the most
prolific existing wells," the release added. 
    Over the course of a 27-year contract, it is planned to
invest some $709 million in operating expenses and $693 million
in capital expenditure, mainly funded through cash flow.
    The plan is pending final approval from local authorities
and completion of negotiations with PDVSA by the end of August,
with the goal of starting operations by October.

 (Reporting by Marianna Parraga; Editing by Kirsten Donovan)
 ((marianna.parraga@thomsonreuters.com; +1 713 371 7559; Reuters
Messaging: @mariannaparraga))