Saturday, August 15, 2020

Marianna Parraga News

PDVSA Changes Oil Deals to Include Shipping as Sanctions Bite

© Eddy Ulin / MarineTraffic.com

Venezuelan state-run oil firm PDVSA has begun offering to ship its own oil, figuring in the costs in crude supply deals to help customers who have struggled to hire vessels to carry the country’s oil due to U.S. sanctions, according to company documents seen by Reuters.The United States has blacklisted vessel owners, shipping operators and threatened to sanction any tanker facilitating the country’s oil exports as it tightens restrictions on trade with the South American country.Washington has been trying to weaken socialist President Nicolas Maduro by choking the OPEC member’s oil exports…

Venezuela's Oil Exports Stagnant in July

© Francis / Adobe Stock

Venezuela exported about 388,100 barrels per day of crude and fuel in July, almost unchanged versus the previous month, as U.S. sanctions on PDVSA continued limiting sales, according to Refinitiv Eikon and internal data from the state-run company.Washington has ramped up pressure this year on PDVSA’s customers, trade partners and shippers aiming to stop the re-sale of Venezuelan oil and block efforts to hide or change its country of origin.That is making it increasingly difficult for many of the company’s clients to find tankers for transporting the oil.A total of 20 cargoes of crude and refined products were shipped last month from the OPEC-member country…

Two Iranian Tankers Sail Back After Venezuela Delivery

© Bernd Rohr / MarineTraffic.com

Two Iranian tankers that delivered fuel to Venezuela as part of a five-vessel flotilla have begun to sail back, according to Refinitiv Eikon, as the government of the South American nation prepares stations to begin charging for the gasoline.The supply is meant to ease fuel shortages that have plagued the country. After three months of fuel rationing, Venezuelans began lining up on Saturday to wait for the Iranian gasoline to be sold at stations from Monday under a new system combining subsidies and internationally-indexed prices.The model…

Third Iranian Fuel Cargo Approaches Venezuela

File photo of oil tanker Petunia (© Mahdi Elhaki / MarineTraffic.com)

The third cargo of an Iranian tanker flotilla carrying fuel for gasoline-thirsty Venezuela on Tuesday reached the nation's exclusive economic zone as the previous two were discharging at state run PDVSA's ports, according to Refinitiv Eikon data.The Iran-flagged tanker Petunia crossed the Caribbean Sea earlier on Tuesday, following the route taken in recent days by vessels Fortune and Forest.The Fortune was welcomed on Monday at PDVSA's El Palito refinery by Venezuela's oil minister, Tareck El Aissami, who thanked Iran for its support during the crisis…

Iranian Tanker Docks in Venezuela

Iranian tanker Fortune file photo (© Rutger Hofma / MarineTraffic.com)

The first of five Iranian tankers carrying fuel to Venezuela has moored at a port serving the El Palito refinery, the oil minister said on Monday, and Refinitiv Eikon data showed a second vessel had entered its waters.Iran is providing Venezuela with 1.53 million barrels of gasoline and refining components in a move criticized by U.S. authorities as both countries are under U.S. sanctions, according to the governments, sources and calculations by TankerTrackers.com.Refinitiv Eikon data showed that the tanker Fortune docked at one of El Palito's berths around 1 a.m.

PDVSA Creates New Ports Unit Amid Company Shakeup

© Francis / Adobe Stock

Venezuela's state-run oil company Petroleos de Venezuela has created a new unit to run its oil terminals, according to a copy of the government's official gazette seen by Reuters and a person with knowledge of the matter.The launch of the new unit, PDV Puertos S.A., comes after socialist President Nicolas Maduro last month named a new PDVSA president and oil minister to try to revive the once-prosperous OPEC nation's crude output, which has fallen to decades-lows due to years of underinvestment and mismanagement as well as U.S.

Venezuelan Oil Exports Rose in April

© MENZHILIY ANATOLY / Adobe Stock

Venezuela's oil exports ticked higher in April after falling in March to their lowest average in seven months, helped by new trading partners that were re-selling cargoes in Asia, according to documents from state-run PDVSA and vessel tracking data.Venezuela shipped 31 cargoes of crude and refined products last month carrying an average of 848,500 barrels per day (bpd), a small increase from the 814,000 bpd the previous month, the data showed.This year, the United States sanctioned two units of longtime PDVSA business partner Rosneft over allegations of hiding the country of origin for Venezuelan crude shipments.U.S.

Pemex Trading Arm Mulls Canceling May-June Cargos

© Vladimir / Adobe Stock

The trading arm of Mexican state oil company Pemex is mulling options to slash the number of fuel cargoes the country imports in May and June as demand plummets because of the coronavirus, three sources close to the talks told Reuters.Pemex last week declared force majeure over fuel supplies from its trading arm PMI Comercio Internacional after a bottleneck of more than 60 vessels built up outside Mexican ports, waiting to discharge.But PMI still has not declared force majeure - a contract provision that allows a party to temporarily suspend its obligations due to external circumstances - over its own fuel purchases…

Mexico's Pemex to Receive $313 mln in Hedge Payouts

© Esteban / Adobe Stock

Mexican state oil company Petroleos Mexicanos (Pemex) expects this year to receive some $313 million from oil and financial firms involved in its annual oil hedging program, Chief Executive Octavio Romero said on Wednesday.Pemex's hedge, which this year covers about a quarter of its gross exports volume, protects the company from price variations and helps it to cover production costs.A larger hedging program contracted by the government secures the oil revenues needed for the federal budget.Pemex is "partially" covered by its hedging program…

Empty Tankers Depart Venezuela; Sanctions Cancel Cargo

© TexBr/AdobeStock

Three large crude carriers (VLCCs) chartered by units of Russian oil major Rosneft to transport Venezuelan oil left Caribbean waters empty on Saturday after the cargoes were canceled due to sanctions, according to Refinitiv Eikon data and a document from Venezuelan state-run oil firm PDVSA.The vessels - which would jointly export some 5.7 million barrels of Venezuelan heavy crude to Asia - had waited for weeks near Venezuelan waters to load, but the cargoes were canceled this week due to sanctions on PDVSA and Rosneft's trading units, according to a PDVSA export program.Following weeks of severe oil price falls amid declining demand…

Coronavirus-related Inspections Delay Venezuelan Oil Exports

© Igor Dashko / MarineTraffic.com

At least two cargoes of Venezuelan crude have been delayed due to health inspections aboard tankers to prevent the spread of the coronavirus, according to an internal document from state oil company Petroleos de Venezuela seen by Reuters.The delays add to a growing glut of tankers loaded with Venezuelan crude that preceded the coronavirus crisis as U.S. sanctions spooked potential customers. With domestic onshore oil inventories approaching capacity, PDVSA has been increasingly forced to send barrels onto floating storage.The largest shipment affected by the health measures is the Delta Angelica tanker…

US Sanctions on Rosneft Trading Shifting Crude Flows

© Nikita Maykov / Adobe Stock

U.S. sanctions on Russian Rosneft's trading arm will disrupt a slice of global crude flows and may prompt refineries in Europe, India and the United States to shift purchases to other crude suppliers, traders said.The United States on Tuesday redoubled efforts to oust Venezuelan President Nicolas Maduro by barring U.S. dealings with Rosneft Trading S.A., a subsidiary of Russia's state oil major Rosneft, which Washington said provides him a financial lifeline. Russia has called the sanctions illegal and said it plans to consider options in reaction.The ban will likely hit some U.S.

Exxon to Load First Crude from Guyana This Weekend

The Liza Phase 1 development project utilizes the Liza Destiny floating, production, storage and offloading (FPSO) vessel moored approximately 120 miles offshore Guyana, with four undersea drill centers supporting 17 wells. (Photo: Hess Corp)

The first-ever cargo of Guyana's crude for export is scheduled to begin loading this weekend so the oil can be processed at Exxon Mobil's refining system, the company told Reuters on Friday.Exxon has so far made 15 discoveries of oil reserves in Guyana, turning a risky exploration venture into one of the world's most promising oil mega-projects. The company is entitled to the first two crude cargoes to be exported from the Liza field, which it shares with U.S.-based Hess Corp and China's CNOOC.The Exxon-led consortium has discovered more than 6 billion barrels of recoverable oil and gas resources off Guyana's coast…

Venezuela Alters Oil Royalty Formulas, Driven by IMO 2020

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Venezuela has changed the formulas for calculating royalties energy companies pay the government to remove references to fuel oil and some crude grades, driven by stricter rules governing marine fuel emissions, according to a document seen by Reuters.A ban by the United Nations shipping agency, the International Maritime Organization (IMO), on the use of fuels with a sulfur content above 0.5%, aimed at reducing pollution, has roiled oil markets and caused price volatility for high-sulfur products like fuel oil.The new rule has also affected prices for heavy crudes including the ones produced by most Latin American countries…

Big Oil to Bid for Guyana Crude Cargoes

(Photo: SBM Offshore)

Large oil companies Exxon Mobil, Hess Corp, CNOOC, BP, Chevron, Total, and Eni are expected to present bids to buy the first three cargoes of Liza crude offered by Guyana's government, the South American country's director of energy said on Monday.A consortium of Exxon, Hess, and China's CNOOC has discovered more than 6 billion barrels of recoverable oil and gas resources off the country's coast. The companies plan to begin exporting crude from the country, which has no history of oil production, in January and February.Mark Bynoe, Guyana's director of energy…

Guyana Seeking Oil Buyers

© Quatrox Production / Adobe Stock

Guyana has invited companies interested in purchasing the first three deliveries of the government's share of the country's looming oil production to present bids this week, the government said in a statement on Sunday.The government will later seek proposals from companies interested in a longer-term contract to market Guyanese crude, the statement said.U.S. oil companies Exxon Mobil and Hess Corp – part of a consortium that has discovered more than 6 billion barrels of recoverable oil and gas resources off the South American country's coast – plan to begin exporting crude in January and February.Guyana has no history of oil production…

Oil Companies Swap Stakes in Mexico

© somartin / Adobe Stock

With Mexico's government insisting that energy companies increase oil and gas output before it auctions off more of the country's vast reserves or offers more partnerships with state-run Pemex, firms ranging from foreign majors to local players are scrambling to buy and sell blocks they already own.The negotiations are creating a dynamic secondary market for oil acreage, which could be the only investment opportunity left for firms until leftist President Andres Manuel Lopez Obrador unblocks his predecessor's flagship energy reform that has…

Big Oil Stuns Brazil in Back-to-back Auction Flops

© Simon Mayer / Adobe Stock

Major global oil firms snubbed a second Brazilian oil auction in a row on Thursday, passing up offshore blocks and forcing officials to reconsider a bidding system that gives a privileged position to state-run Petroleo Brasileiro SA.The only block awarded in Thursday's bidding went to Petrobras, as the Brazilian state-run firm is known, and Chinese state firm CNODC, a unit of China National Petroleum Corp, which offered the minimum bid. Four other blocks received no bids.The result, following a lack of foreign interest in an even bigger Wednesday round…

Moment of Truth for Brazilian Oil Auction is Here

Reuters graphic of Brazil Oil blocks

Executives from many of the world's biggest oil companies gathered in Rio de Janeiro on Wednesday to compete in Brazil's long-awaited transfer-of-rights (TOR) oil bidding round, the largest offer of crude and gas reserves in the nation's history.Lawyers and executives have been working feverishly in recent weeks to sort out terms of consortia that will place bids on the four blocks available in the TOR area — offshore fields with billions of barrels in confirmed reserves.If all the areas receive a bid, Brazil's government will net 106.5 billion reais ($26.7 billion) in signing bonuses…

Venezuela's Oil Exports top 800,000 bpd Again

Venezuela's oil exports eased in October, but surpassed 800,000 barrels per day (bpd) for second month in a row, helping to drain an inventory buildup that had forced the OPEC country to cut output, according to documents and data.Since the United States imposed sanctions on Venezuelan state-run oil firm PDVSA in January to oust socialist President Nicolas Maduro, the OPEC-member country has struggled to find customers and tankers for its oil.New rounds of sanctions in August and September on Venezuela and maritime firms carrying the nation's oil pushed its crude stocks to record levels, requiring PDVSA to reduce output and halt blending operations.