June 17 (Reuters) – A 650,000-barrel-cargo of Venezuela’s oil chartered by Italy’s Eni (ENI.MI) is about to set sail carrying the first export of crude from the U.S.-sanctioned country to Europe in two years, Refinitiv Eikon data showed on Friday.
The U.S. State Department sent letters to Eni and Spain’s Repsol (REP.MC) in May authorizing them to resume taking Venezuelan crude as a way to settle billions of dollars of unpaid debt and dividends owed by the OPEC-member nation.
A second tanker chartered by Eni, the very large crude carrier (VLCC) Pantanassa, is currently navigating towards Venezuela and expected to load 2 million barrels of the same grade, diluted crude oil (DCO), and take it to Europe, according to the Eikon data and a shipping document seen by Reuters.
That cargo is expected to be delivered by Venezuela’s state-owned PDVSA later this month with an option for Eni to sell a portion of the crude to Spain’s Repsol (REP.MC)for its Cartagena and Bilbao refineries, according to the document and sources.
The Malta-flagged Pantanassa is scheduled to load via ship-to-ship transfer near Venezuela’s Amuay port, the document added.
Eni, Repsol and PDVSA did not immediately reply to requests for comment.
Venezuela’s May oil exports plummeted to the lowest level in 19 months over contract changes enforced by PDVSA to switch most spot sales to prepayment, reducing the risk of unpaid cargoes. The change did not affect customers under swap deals of debt payment agreements.
European, Asian and U.S. companies operating joint ventures with PDVSA in Venezuela, including Eni, Repsol, Chevron (CVX.N), ONGC Ltd (ONGC.NS), and Maurel & Prom (MAUP.PA), have accumulated billions of dollars in pending debt since the government of then U.S. President Donald Trump suspended oil swaps used for exchanging Venezuelan oil for fuel and debt payments.
until we get rid of oil entirely, a diversification of suppliers like China does is best
I am wondering what Guaido, the US and EU declared leader of Venezuela thinks about this set of events.
> “I am sure Chevron and the companies that are currently leaving (Russia) will not end up changing one dictator by another,” he told journalists.
Yes because oil companies are known to be super big on democracy…
The most interesting thing for me here is that there apparently exist tankers with 2million barrels worth of room.
For perspective, russia was on average pumping 2.2 million barrels of oil a day to Europe. The EU chartering or building supersize tankers like the one for ENI to replace oil in that same level could in theory work out. Sure, lots of caviats to it but still, the rough idea is not impossible. And this does not take into account the oil from other places (like Iran, Saudi Arabia, Nigeria etc.).
I understand why the EU managed to quit russian oil largely at the end of the year, given these circumstances. Its taxing, but possible. And banning insurance for ships who in return transport russian oil is a big screw you to russias attempts to export their oil elsewhere in the long term.
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June 17 (Reuters) – A 650,000-barrel-cargo of Venezuela’s oil chartered by Italy’s Eni (ENI.MI) is about to set sail carrying the first export of crude from the U.S.-sanctioned country to Europe in two years, Refinitiv Eikon data showed on Friday.
The U.S. State Department sent letters to Eni and Spain’s Repsol (REP.MC) in May authorizing them to resume taking Venezuelan crude as a way to settle billions of dollars of unpaid debt and dividends owed by the OPEC-member nation.
A second tanker chartered by Eni, the very large crude carrier (VLCC) Pantanassa, is currently navigating towards Venezuela and expected to load 2 million barrels of the same grade, diluted crude oil (DCO), and take it to Europe, according to the Eikon data and a shipping document seen by Reuters.
That cargo is expected to be delivered by Venezuela’s state-owned PDVSA later this month with an option for Eni to sell a portion of the crude to Spain’s Repsol (REP.MC)for its Cartagena and Bilbao refineries, according to the document and sources.
The Malta-flagged Pantanassa is scheduled to load via ship-to-ship transfer near Venezuela’s Amuay port, the document added.
Eni, Repsol and PDVSA did not immediately reply to requests for comment.
Venezuela’s May oil exports plummeted to the lowest level in 19 months over contract changes enforced by PDVSA to switch most spot sales to prepayment, reducing the risk of unpaid cargoes. The change did not affect customers under swap deals of debt payment agreements.
European, Asian and U.S. companies operating joint ventures with PDVSA in Venezuela, including Eni, Repsol, Chevron (CVX.N), ONGC Ltd (ONGC.NS), and Maurel & Prom (MAUP.PA), have accumulated billions of dollars in pending debt since the government of then U.S. President Donald Trump suspended oil swaps used for exchanging Venezuelan oil for fuel and debt payments.
until we get rid of oil entirely, a diversification of suppliers like China does is best
I am wondering what Guaido, the US and EU declared leader of Venezuela thinks about this set of events.
https://www.reuters.com/world/americas/venezuelas-opposition-asks-oil-companies-stick-democracy-2022-03-17/
> “I am sure Chevron and the companies that are currently leaving (Russia) will not end up changing one dictator by another,” he told journalists.
Yes because oil companies are known to be super big on democracy…
The most interesting thing for me here is that there apparently exist tankers with 2million barrels worth of room.
For perspective, russia was on average pumping 2.2 million barrels of oil a day to Europe. The EU chartering or building supersize tankers like the one for ENI to replace oil in that same level could in theory work out. Sure, lots of caviats to it but still, the rough idea is not impossible. And this does not take into account the oil from other places (like Iran, Saudi Arabia, Nigeria etc.).
I understand why the EU managed to quit russian oil largely at the end of the year, given these circumstances. Its taxing, but possible. And banning insurance for ships who in return transport russian oil is a big screw you to russias attempts to export their oil elsewhere in the long term.