On Friday, Refinitiv Eikon data revealed that a cargo of 650,000 barrels of Venezuelan oil chartered from Italy’s Eni is about to set sail for the first export of crude oil from the US-sanctioned country to Europe in two years.
The US State Department sent letters to Spain’s Eni and Repsol in May authorizing them to resume dealings with Venezuelan crude as a way to settle billions of dollars of debt and profits owed by the OPEC member.
Another tanker chartered by Eni, the VLCC Pantanassa, is currently heading towards Venezuela and is expected to carry 2 million barrels of the same grade, of Dilute Crude Oil (DCO), and take it to Europe.
oil
Oil prices are witnessing a significant decline after the interest rate hike
Oil prices are witnessing a significant decline after the interest rate hike
Venezuela’s state-owned PDVSA is expected to deliver that cargo later this month with Eni having an option to sell part of the crude to Spain’s Repsol for its refineries in Cartagena and Bilbao, according to the document and sources.
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The document added that the Malta-flagged vessel Pantanasa is scheduled to be loaded on ship-to-ship transfer near the Venezuelan port of Amway. Eni, Repsol and Budfsa did not immediately respond to requests for comment.
Venezuela’s oil exports fell in May to their lowest level in 19 months due to contract changes that PDVSA imposed to convert most spot sales to prepaid , reducing the risk of unpaid shipments and the change did not affect customers under debt repayment swap agreements.
European, Asian and US companies running joint ventures with PDVSA in Venezuela, including Eni, Repsol, Chevron, ONGC Ltd. and Morrell & Prom, have amassed billions of dollars in outstanding debt since the government of then US President Donald Trump suspended oil swaps used to replace oil. Venezuelan fuel and debt payments.
