Venezuela: Will Decision To Scrap Bitor Undermine PDVSA's Reputation?

Petroleos de Venezuela plans to dissolve PDVSA subsidiary Bitor and discontinue production of Orimulsion, a patented Venezuelan under-boiler fuel that competes against coal and fuel oil. When lawyers for utilities in a half-dozen countries that use Orimulsion threatened PDVSA with multiple breach-of-contract lawsuits, the board reversed part of its original decision. However, Bitor is still being scrapped, Orimulsion's future is in doubt, and PDVSA's claim that Venezuela is a reliable energy supplier and business partner has been undermined.