Saturday, Feb 04, 2023

Venezuela's oil exports slipped despite big assist from Iran

Venezuela's oil exports slipped despite big assist from Iran

Venezuela's oil exports last year declined due to infrastructure outages, U.S. sanctions and rising competition in its key Asia market despite assistance from ally Iran, according to shipping data and documents.

Exports this year are expected to get a lift after the United States relaxed oil sanctions by authorizing some partners of state-run firm Petroleos de Venezuela (PDVSA) to resume taking Venezuelan crude.

Iran expanded its role in Venezuela last year, sending supplies to boost exports and technicians to repair a refinery. But the poor condition of the country's ports, oilfields and refineries and harsh competition from Russia on crude supplies to China will keep limiting export gains, experts said.

PDVSA and its joint ventures exported some 616,540 barrels per day (bpd) of crude and refined products last year, a 2.5% drop from 2021 and slightly below 2020, according to a Reuters tally of data and documents.

Shipments of crude and refined products by the OPEC-member nation, which has been under U.S. oil sanctions since 2019, fell by 2.5% in 2022 even amid higher production, as outages and more competition at exports markets hit state company PDVSA

"Despite the increased Iranian help, the decline in net exports results from a combination of production stagnation and the increasing competition of Russian exports in the Chinese black market," said Francisco Monaldi, a Latin American energy expert at Rice University's Baker Institute.

PDVSA did not immediately reply to a request for comment.

The OPEC-member country boosted its exports of petroleum coke, methanol and other oil byproducts, which helped offset some of the revenue loss. Shipments of these lower-value products more than tripled to 4.36 million metric tonnes last year from 2021.


PDVSA's refineries began the new year processing 386,000 bpd of crude, less than 30% of their 1.3 million-bpd installed capacity, according to figures from employee unions.

Refining shortages due to plant outages and delayed maintenance at year-end left the domestic fuel market with long lines of drivers waiting for gasoline in front of stations.

The new gasoline crisis is emerging even though Venezuela tripled oil imports to 78,170 bpd, mainly from deliveries of crude and condensate from Iran, which helped produce exportable crude grades and motor fuels.

Venezuela's crude production averaged some 721,000 bpd according to a preliminary data for December and OPEC reports. Output rose 13% from the previous year and stood above pandemic levels, but it remained well below historic averages and fell short of PDVSA 2022 goal of 2 million bpd, the data showed.

Even after bouncing to more than 700,000 barrels per day in 2022, the South American nation is far away from reaching the 3 million bpd of crude it last produced in 1998

Crude oil output is set to increase by about 100,000 bpd this year, Baker's Monaldi said, adding that exports could recover a little more if the joint ventures can drain millions of barrels in inventories and if PDVSA is able to compete more aggressively in Asia.

A U.S. license granted to Chevron Corp (CVX.N) to recover output and exports in Venezuela will take effect this year. Italy's Eni (ENI.MI) may also get a cargo of Venezuelan crude this month.

Venezuela in 2022 received some $6 billion to $7 billion in oil cash after price discounts, shipping costs, fees, swaps and debt repayment, according to independent figures. A global appetite for fuel alternatives boosted its oil byproducts exports, which added millions of dollars last year.

Venezuela's drilling rig count has remained at zero since 2020 amid U.S. sanctions and a lack of investment, leading to stagnant oil output


Related Articles

Tennessee Bill Would Imprison People for 3 Years If They 'Lie' About Rape to Get an Abortion.
Charlie Munger, calls for a ban on cryptocurrencies in the US, following China's lead
EU found a way to use frozen Russian funds
First generation unopened iPhone set to fetch more than $50,000 at auction.
WARNING GRAPHIC CONTENT - US Memphis Police murdering innocent Tyre Nichols
House Speaker Kevin McCarthy said he will block Reps. Adam Schiff and Eric Swalwell from serving on the House Intelligence Committee
Almost 30% of professionals say they've tried ChatGPT at work
Interpol seeks woman who ran elaborate exam cheating scam in Singapore
What is ChatGPT?
Bill Gates is ‘very optimistic’ about the future: ‘Better to be born 20 years from now...than any time in the past’
Tesla reported record profits and record revenues for 2022
Germany confirms it will provide Ukraine with Leopard 2 tanks
Prince Andrew and Virginia Giuffre Photo Is Fake: Ghislaine Maxwell
Opinion | Israel’s Supreme Court Claims a Veto on Democracy
Moonwalker Buzz Aldrin Gets Married On His 93rd Birthday
Who’s Threatening Israeli Democracy?
Federal Reserve Probes Goldman’s Consumer Business
China's first population drop in six decades
Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown
Tesla slashes prices globally by as much as 20 percent
1.4 Million Copies Of Prince Harry's Memoir 'Spare' Sold On 1st Day In UK
After Failing To Pay Office Rent, Twitter May Sell User Names
Lisa Marie Presley, singer and daughter of Elvis, dies aged 54
FIFA president questioned by prosecutors
Britain's Sunak breaks silence and admits using private healthcare
Hype and backlash as Harry's memoir goes on sale. Unnamed royal source says prince 'kidnapped by cult of psychotherapy and Meghan'
Saudi Arabia set to overtake India as fastest-growing major economy this year 
Google and Facebook’s dominance in digital ads challenged by rapid ascent of Amazon and TikTok
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
TikTok CEO Plans to Meet European Union Regulators
France has banned the online sale of paracetamol until February, citing ongoing supply issues
Japan reportedly to give families 1 million yen per child to move out of Tokyo
Will Canada ever become a real democracy?
Hong Kong property brokerages slash payrolls in choppy market
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX
Effect of EU sanctions on Moscow is ‘less than zero’ – Belgian MEP
Coinbase to Pay $100 Million in Settlement With New York Regulator
FTX assets worth $3.5bn held by Bahamas securities regulator
A Republican congressman-elect is under investigation in New York after he admitted he lied about his education and work experience.
Brazilian football legend Pele, arguably the greatest player ever, has died at the age of 82.
Hong Kong to scrap almost all its Covid rules
EU calls screening of travellers from China unjustified
US imposes Covid testing for visitors from China
Ukraine President Volodymyr Zelenskyy Addresses Joint Session of Congress - FULL SPEECH
Where is Rishi? Chancellor Jeremy Hunt's excuses about the UK's economic challenges just don't make sense
Former FTX CEO Bankman-Fried finally arrested in Bahamas after U.S. files charges
Corruption works: House Financial Services Chair Waters doesn't plan to subpoena her donor, Sam Bankman-Fried, to testify at hearing on FTX collapse
Ronaldo's new contract...
Prince William's godmother resigns honorary royal role after exposing her/their racism
Tax fraud verdict again exposes illusion of Trump the master businessman