U.S. oil refiner Valero, rivals pursue Chevron for Venezuelan crude & More Trending News


  • Refiners contact oil agency, vessel house owners to get in queue
  • Venezuela’s state oil agency but to schedule first cargo

HOUSTON, Dec 1 (Reuters) – U.S. oil refiners that after had been common patrons of Venezuelan crude are jockeying to win entry to coming cargoes chartered by Chevron Corp (CVX.N) beneath a newly issued U.S. license, two individuals accustomed to the matter mentioned.

The Biden administration final week approved Chevron to develop operations in Venezuela and resume taking prized heavy crude to the United States. It was first easing in additional than three years of a U.S. ban on imports from the South American nation. An additional rest could comply with if Caracas and opposition leaders agree on phrases of a presidential election, Washington has mentioned.

Valero Energy Corp (VLO.N), PBF Energy (PBF.N) and Citgo Petroleum have proven curiosity in having access to the oil Chevron is anticipating in coming weeks, based on the individuals.

Valero, PBF and PDVSA didn’t reply to requests for remark. A Chevron spokesperson mentioned it doesn’t touch upon industrial issues. A spokesperson for Citgo declined to remark.

Venezuelan heavy crude grades, fashionable amongst U.S. refiners for producing merchandise from asphalt to motor fuels, had been partially changed by Russian provides within the aftermath of sanctions on Venezuela.

Some of those corporations this week started contacting Chevron, transport businesses and vessel house owners to examine timetables, the sources added. No Venezuelan oil formally has been allotted to Chevron but and no chartering contracts have been signed to move cargoes to the United States, based on Venezuelan export schedules and Refinitiv freight knowledge.


The most up-to-date chartering contracts to move Venezuelan oil to the U.S. Gulf Coast are from late 2018, proper earlier than sanctions, the Refinitiv knowledge confirmed.

Valero, PBF and different U.S. impartial refiners wouldn’t want any new authorization to purchase Venezuelan oil from Chevron. But Citgo, owned by Venezuela’s PDVSA, could require clearance from the U.S. Treasury Department because it operates beneath a license, analysts and consultants mentioned.

Chevron might prioritize its personal refineries, particularly Pascagoula, Mississippi, and El Segundo, California, which had been common receivers of Venezuela oil prior to now.

On Thursday, Chevron CEO Michael Wirth mentioned the corporate will not be seemingly so as to add funding to spice up Venezuela’s output within the subsequent six months because the sanctions framework will take time to be eased. The main impact can be to permit some Venezuelan oil to stream again to the United States, “which will help the U.S. refining system,” Wirth mentioned.

A complete lifting of sanctions is unlikely within the close to time period, mentioned analysts, however Venezuela’s former clients, its enterprise companions and collectors are taking steps to gather pending money owed within the wake of the Chevron authorization. Washington has not signaled it could authorize different corporations to gather on these money owed.


Because spring and summer season within the United States are probably the most energetic seasons for asphalt paving and peak driving, Venezuela’s heavy Boscan crude produced by Chevron and PDVSA at their Petroboscan undertaking may very well be the primary exported.

To restart these shipments, dredging Maracaibo Lake’s navigation channel may be wanted to permit Panamax and Aframax tankers attain Venezuela’s western oil terminals, transport sources mentioned.

A glut of Boscan crude in storage earlier this 12 months pressured a complete shutdown of its processing. Draining these shares should come first to restart output, PDVSA paperwork confirmed.

There are separate shares of Hamaca oil and diluted crude for quick export on the nation’s largest terminal. But as of Nov. 29, there have been just one.47 million barrels out there, sufficient for solely two cargoes, based on the PDVSA paperwork.

Petropiar’s crude upgrader, operated by PDVSA and Chevron, was halted final week over a naphtha leak. It restarted days later to provide about 100,000 barrels per day of Hamaca.

In November, PDVSA despatched 1.2 million barrels of Hamaca to its refineries for processing. About 1 million barrels of gasoline oil had been additionally shipped from Petropiar to Iran’s state agency Naftiran Intertrade Co LTD (NICO) as a part of an oil swap, the paperwork confirmed.

Reporting by Marianna Parraga; Editing by Lisa Shumaker

Our Standards: The Thomson Reuters Trust Principles.

Marianna Parraga

Thomson Reuters

Focused on energy-related sanctions, corruption and cash laundering with 20 years of expertise protecting Latin America’s oil and gasoline industries. Born in Venezuela and based mostly in Houston, she is writer of the e-book “Oro Rojo” about Venezuela’s troubled state-run firm PDVSA and Mom to 3 boys.

U.S. oil refiner Valero, rivals pursue Chevron for Venezuelan crude

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