After the much publicised arrest of former employee (head of IT says NST) of PetroSaudi, Justo Xavier, brouhaha had simmered down, the all encompassing charge of forgery and tampering of confidential PetroSaudi e-mails has since become the silver bullet for 1MDB's debt woes.
For what its worth, here are some screenshots of Justo Xavier's relationship with famous owner of PetroSaudi, Tarek A E Obaid.
1. Justo Xavier as Director of Almamlaka Limited, link here.
2. From link above, clicking Almamlaka Limited or link here, you find
What you see is what you get. Justo Xavier, Director and Tarek A E Obaid, Shareholder.
As I said for what its worth.
And speaking of "what its worth", I had posted about PetroSaudi's dubious "assets" in Turkmenistan.
Justo recap 1MDB's Arul Kanda's press statement,
PetroSaudi, via a subsidiary company, owned assets, comprising rights to oil fields in Turkmenistan and Argentina, worth approximately USD2.7 billion. These assets were sold by PetroSaudi to another subsidiary, “JV Co”, which at the time of the asset sale, was a company formed by and initially 100% owned by PetroSaudi for the purposes of a proposed joint venture with 1MDB.
In return for the USD2.7 billion asset transfer, JV Co had to pay PetroSaudi USD700 million. This indebtedness resulted from the asset transfer. Accordingly, there was no loan made or “to settle”.
Lets now take a trip to Argentina the for the so-called "owned assets, comprising rights to oil fields in Turkmenistan and Argentina, worth approximately USD2.7 billion. "
Searching from 2007-2009, the earliest mention of PetroSaudi's involvement in Argentina is this, "PetroSaudi plans investment with Patagonia, Andes Energia" dated February 26, 2008 and quote the article,
"Saudi Arabian private oil company PetroSaudi plans to invest up to US$94.5mn in seven E&P licenses in Argentina held by UK oil companies Patagonia Oil & Gas and Andes Energia (LSE: AEN), according to an Andes Energia statement.
The cash injection will aid the development of the seven blocks in which Andes Energia has a 20% carried, 3% working and 20% royalty interest."and
Founded in 1995, PetroSaudi is a private Saudi Arabian oil company not affiliated with the Saudi government, PetroSaudi co-founder Tarek Obaid told BNamericas.
Saudi prince Turki bin Abdullah bin Abdulaziz Al Saud is the second co-founder of the company, according to PetroSaudi's website.
"We found Latin America to be a very exciting place and have great relationships there on the ground," Obaid said. "We decided to go forward with a serious investment in that part of the world."
"Technically speaking, we will become a very large company in terms of acreage in Argentina," he added.
The company, for instance, is involved with US energy holding company AEI (formally known as Ashmore Energy International) in the purchase of a 10% stake in Argentine oil company YPF, Obaid said.
The company also is in the process of purchasing stakes in Paraguay with CDS Oil & Gas. "We're going to be putting a lot of assets there to grow that company," Obaid added.
The seven fields PetroSaudi will invest in with Patagonia are not new discoveries, but were abandoned because of the low price of oil in previous years.
"Now with high oil prices, those fields have become a profitable opportunity," Obaid continued. "There's a lot of oil down there."
"We've bought into four of five producing assets in Argentina, and were producing around 50,000b/d in Argentina," Obaid said.
PetroSaudi will most likely end up with interests in 37 fields in Argentina, he addedAn investment of US$94 million and some clever word play, "involved with US energy holding company AEI (formally known as Ashmore Energy International) in the purchase of a 10% stake in Argentine oil company YPF", that's about it.
Search for "PetroSaudi" or "Petro Saudi" at the AEI website and YPF website will get you, nothing.
Even the US94 million investment has that familiar ring in Andes Energia PLC Annual report 2007,
In February 2008, we received notification that Patagonia, our consortium partner in certain oil and gas interests, had entered into a funding agreement with PetroSaudi, which could provide funding up to US$95.4 million. PetroSaudi has agreed to invest US$39.5 million in the first year of the agreement with an option to invest an additional US$55 million in the second and third years.
Since that's all that could be found about PetroSaudi's involvement in Argentina, I cannot say whether PetroSaudi had exercised its option for a total of US$95.4 million, failing which its investment would only be US$39.5 million.
Or Patagonia paying PetroSaudi to extinguish the option.
Be that as it may, its only US$ millions NOT US$ billions or approximately USD2.7 billion, to be exact for crying out loud.
So lets be clear on this, that's about all PtroSaudi is known to have invested in Argentina, no such rights to oilfields in Argentina or Turkmenistan.
But to be fair to PetroSaudi, its true that the company did purchase a stake in CDS Oil and Gas in Paraguay.
From this article in Nov 25, 2008 ,"Saudi Backing Gives CDS Oil & Gas New Momentum In Paraguay" just ten months after, which nothing else could be found about PetroSaudi's Argentinian connection other than that is mentioned above, it quotes,
PetroSaudi, through Patagonia Oil & Gas, already has a large exploration presence in Argentina and is negotiating for acreage in Brazil. Now it is looking to add Paraguay to the mix.
Remember, at the very most, only a US$95.4 million investment in Argentina. And add to Paraguay it did. The article had this in its opening,
Investors in CDS Oil & Gas, which has struggled in recent years to make headway with the exploration of its frontier acreage in Paraguay, are hoping there will now be some real advances after the AIM firm’s Saudi shareholders upped their stake in the company to 62.8 per cent and undertook some high level discussions with leading Paraguayan politicians, including the President Fernando Lugo
But here is another familiar ring, when "CDS, PetroSaudi Visit Paraguay for Hydrocarbon Investment Pow-Wow" in October 13, 2008,
Representatives of CDS together with members of PetroSaudi International, including Tarek Obaid (CEO and partner with the PetroSaudi Chairman, Prince Turki bin Abdullah bin Abdulaziz Al Saud), met with President Fernando Lugo, the Minister of Foreign Affairs, Alejandro Hamed Franco, and Minister of Finance, Dionisio Borda, to discuss ongoing and future investments in hydrocarbon exploration in Paraguay.
They also discussed extending and improving the relationship between the Kingdom of Saudi Arabia and the Republic of Paraguay, in the form of bilateral trade, and increased export.
Bloomberg also reported the above here.
I don't know about you readers but it somehow does sound familiar to me.
Justo recap, this is Paraguay NOT Argentina.
Justo mention also, with a prayer that the same fate does not befall 1MDB, Bloomberg has this to say about CDS or the CDS Oil & Gas Group Plc, link here.
CDS Oil and Gas Group Plc engages in the exploration and development of oil and gas properties primarily in Paraguay. The company holds contractual rights in respect of three blocks of property covering 2.9 million hectares in the Chaco region of Paraguay. Its portfolio includes the Gabino Mendoza block covering an area of approximately 40,000 hectares; the PG & E block covering an area of 491,077 hectares; and the Boqueron block with an area of 800,000 hectares. The company was founded in 2003 and is based in London, United Kingdom. CDS Oil & Gas Group Plc is a former subsidiary of PetroSaudi International Ltd. CDS Oil & Gas Group Plc is in liquidation.
Justo recap, PetroSaudi's so-called assets in the JV Co, there's no such oil rights worth US$2.7 billion, neither in Turkmenistan or Argentina.
And tampered or forged e-mails will not alter the fact that 1MDB had not made a thorough due diligence check to ascertain the authenticity of these so-called assets.
Show us the documents of the "independent valuation" of these so-called assets or as the saying goes, SHOW US THE MONEY.