The first cargo of fuel from Venezuela, containing 650,000 barrels, chartered by Eni will soon leave Venezuela. After two years of US sanctions, Venezuelan oil exports to Europe can resume. In fact, last May, the U.S. Department authorized Eni and Respol Spain to take Venezuelan crude oil as a means of settling the country’s unpaid debts.
In addition, Pantanassa, a second tanker chartered by Eni, is currently sailing to Venezuela. Thus, it is expected to load two million barrels of crude oil bound for Europe. This shipment is expected to be delivered by the Venezuelan state-owned company, PDVSA, later this month. It will be loaded near the Venezuelan port of Amuay. Eni will have the option to sell part of the crude oil to Repsol for its refineries in Cartagena and Bilbao.
Venezuelan oil impacted by US sanctions
For years, Venezuelan oil exports have been falling steadily. It reached its lowest level in 19 months last May due to contract changes imposed by PDVSA.
Most contracts are switched from cash sales to prepayment, reducing the risk of unpaid shipments. This change did not affect clients under debt exchange agreements.