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Case No. VENEZUELA-2018-358633-1
Rothwell Energy Services, LLC
c/o Williams Hart Boudas Easerby, LLP
[ ]
8441 Gulf Freeway, Suite 600
Houston, TX 77107-5051
Dear [ ]:
This letter responds to correspondence dated November 25, 2018, as supplemented on July 26, 2019, and November 7, 2019, on behalf of Rothwell Energy Services, LLC (Rothwell) to the Office of Foreign Assets Control (OFAC) (the "Application") requesting an authorization to collect from CITGO Petroleum Corporation[1] (CITGO) an amount totaling $1,252,691.33, for CITGO's obligations to Rothwell after termination of the Agreement Between CITGO and Rothwell, and CITGO's reimbursement obligations totaling $1,130,317.37, and other costs associated with the attempts to collect them (collectively, the "Invoices''). We understand from the Application that the agreement for engineering, procurement and construction project between Rockwell and CITGO was signed in June 2017, which was then...
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1) CASE NO. VENEZUELA-2018-358633-1 BACKGROUND/TIMELINE
Case No. VENEZUELA-2018-358633-1 is an extremely important/illuminating guidance letter as it relates to the notion of “new debt,” in particular where invoices are issued pursuant to an underlying contract that predates the relevant “new debt” effective date. The timeline of relevant events, so far as is discernible from the information available to us, is as follows:
a) June, 2017: CITGO (a “Government of Venezuela” (“GOV”) entity owned by PDVSA) and Rothwell Energy Services (Rothwell) enter into the “agreement for engineering, procurement and construction project” (the “Agreement”).
b) August 24, 2017: EO 13808 is issued, prohibiting all dealings in “new debt” of “PDVSA” with a maturity greater than 90 days” and “new debt” of other segments of the GOV of a maturity longer than 30 days.
c) May, 2018: the Agreement...