Struggling Venezuela Launches Tender To purchase U.S. Crude
Struggling Venezuelan state oil firm PDVSA has launched tenders to buy a total four.2 million barrels of U.S. and Russian crude oil, which includes up to 3 million barrels of Petroleum Product manufacture U.S. mild candy and 1.2 million barrels of Russian Urals, Reuters studies citing tender paperwork.
One tender is for five cargoes, 600,000 barrels each, of WTI or DSW crude blends. According to the paperwork, the corporate would additionally consider taking it in alternate increments of two 1-million-barrel cargoes of U.S. crude, plus another 600,000-barrel shipment.
The other tender is for 2 cargoes of 600,000 barrels of Urals crude every, petroleum productsmpany each for processes January delivery. The crude will be processed at Venezuela’s Isla refinery, which has a capability of 335,000 bpd, but Isla has been working at lowered utilization rates because of a shortage of gentle crude.
If the tenders are successful—which is a questionable event indeed as Venezuela, already cash-strapped, faces even more difficulties in gentle petroleum productsmpany of U.S. sanctions—the mild crude would in all probability be used to make gasoline oil, which is an important export oil product for Venezuela.
The tender is unlikely to relieve Venezuela of its troubles. Current delivery information has revealed there are four tankers ready to load crude oil and gas oil on the port of Paraguana and another eight ready at the Jose port—PDVSA’s largest export terminal—to load refined oil products. There are also ten vessels waiting to unload refined merchandise for the Venezuelan petroleum productsmpany market, but payments to the sellers have been delayed, and now so is unloading. Associated: The Noose Tightens: Venezuela Struggles To Ship Oil
Venezuela has been struggling to rein within the decline of its crude oil manufacturing resulting from underinvestment, mismanagement, and, most recently, U.S. sanctions. In October, crude oil production fell to the lowest in nearly 30 years, as PDVSA is unable to pay for companies rendered by oilfield service providers, who at the moment are refusing to proceed working with it.
So as to add insult to harm, the country’s largest refinery, Paraguana, suffered damages from a fireplace earlier this month, which triggered a severe drop in capacity utilization to simply 13 %. The refinery has a each day capacity of 955,000 barrels of crude.