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Venezuelan oil exports to Europe set to resume after two years -document, sources

Commodities Jun 17, 2022 09:35PM ET
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© Reuters. The logo of Italian energy company Eni is seen at a gas station in Rome, Italy September 30, 2018. REUTERS/Alessandro Bianchi

By Marianna Parraga

(Reuters) -A 650,000-barrel-cargo of Venezuela's oil chartered by Italy's Eni 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 (OTC:REPYY) 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 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 (NYSE:CVX), ONGC Ltd, and Maurel & Prom, 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.

Venezuelan oil exports to Europe set to resume after two years -document, sources
 

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Comments (10)
Robert Smith
Robert Smith Jul 04, 2022 7:55PM ET
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The USA controls whether a Spanish bank can do business with Venezuela.
Bett Albern
Bett Albern Jun 18, 2022 5:46PM ET
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Wait a second, I thought Russia and Venezuela were Amigos?  Well, that did not last long.
David CA
ILoveQE Jun 18, 2022 7:45AM ET
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Okay...so the "Greenies" spew for less fossil fuels but as soon as the world rumbles because of potential riots, they open everything up. Gee...one word comes to mind...hypocrites.
Hannibal Lecter
Hannibal Lecter Jun 18, 2022 6:12AM ET
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The more funny are Eu... A lot of santions punish to Russia... Nobody look to maduro what he does
lup sup
lup sup Jun 17, 2022 10:49PM ET
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Once US interest are affected, the sanctions are lifted in a jiffy.
Todd Gray
Todd Gray Jun 17, 2022 10:24PM ET
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I thought the USA was gonna invade Lil Venezuela and steal their vast stash of gold bullion?
99
99 Jun 17, 2022 10:24PM ET
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They've already confiscated Venezuela's state stockpile of gold and sanctioned the country further, increasing the poverty and starvation there. The US government is commiting evil acts like this all around the world without repercussion.
Jun 17, 2022 10:06PM ET
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Europe and the west have been defeated by russia
Charles Leeson
Charles Leeson Jun 17, 2022 10:06PM ET
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The unpopular truth. Checkmate.
99
99 Jun 17, 2022 10:06PM ET
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Europe and the West have become the "bad guys", sanctioning the rest of the world into poverty and starvation and invading and conquering anyone who refuses to bend the knee to the American oligarchy.
Co Gonz
Co Gonz Jun 17, 2022 10:06PM ET
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99 that’s interesting- it’s more is congress being corrupt. Us has biolaps in Ukrainian that are highly illegal and need to defend them
Jay Garrelts
Jay Garrelts Jun 17, 2022 9:47PM ET
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He said I didn’t need your land but what I did was I connected straws and i drank your milkshake from over here right out from under your nose
Brad Albright
Brad Albright Jun 17, 2022 9:47PM ET
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Sadam Hussein?
Jay Garrelts
Jay Garrelts Jun 17, 2022 9:47PM ET
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Brad Albright A movie actually there will be blood You should watch it I bet you’ll dig it
Nick Johnson
Nick Johnson Jun 17, 2022 9:45PM ET
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Venezuela is as bad as the Russians, arguably they are quite a bit worse.
Brad Albright
Brad Albright Jun 17, 2022 9:45PM ET
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What neighboring country is Venezuela trying to wipe of the face of the earth?
Co Gonz
Co Gonz Jun 17, 2022 9:45PM ET
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Brad Albright misguided question that shows you just follow every word of news.. putin can’t ******Ukrainians and won’t therefore wipe them off the face of the earth. This is extremely tricky situation but if you understand Ukrainian history you would understand the situation better. Venezuela is worse than Russia, your us government has to protect their illegal interests
Jeff Chevalier
Jeff Chevalier Jun 17, 2022 4:07PM ET
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Here's the question. Why does Italy give a rats behind about US sanctions? The sovereign country has to get Washington's permission to buy oil from another country?
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Arthur Timmins
Arthur Timmins Jun 17, 2022 4:07PM ET
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Because Venezuela is an oppressive dictator. And, much of the civilized part of the world has universally sanctioned them due to human rights violations. Dictators and communists could careless!
Jeff Chevalier
Jeff Chevalier Jun 17, 2022 4:07PM ET
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Okay, Venezuela is run by a dictator. Why does Italy need US permission?
Flavio Man
Flavio Man Jun 17, 2022 4:07PM ET
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Jeff Chevalier It doesn’t need any permission I guess. Washington lifting sanctions on Venezuelan oil exports is not a “permission” granted to Italy. Indeed, Russia itself is loaded of sanctions and still Italy imports gazillions of gas from it. I guess the reason to lift the sanctions is primarily to bring down the crude price. Without sanctions it makes sense pricewise for Italy (or Spain) to send a giant vessel across the ocean to load low grade oil from Venezuela.
Levan Jackson
Levan Jackson Jun 17, 2022 4:07PM ET
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Maybe Italy can't afford to get sanctioned by the US for buying from a country currently under US sanctions. It's also generally not a good idea to irritate a country that you're partnered with through NATO. Look what happened with Turkey when they purchased the S-400. That might have something to do with it. When you're partnered with someone it's typically courteous and respectful not to go out of your way to ****** them off and you make compromises. This is the compromise.
Co Gonz
Co Gonz Jun 17, 2022 4:07PM ET
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Jeff Chevalier the main reason is that the world had tried to move to together on these issues. Not really approval but more collaborative approach- a one world instead of separate countries acting on their own
 
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