The Trump administration has given October-November deadlines for PDVSA’s long-term customers such as Spain’s Repsol, India’s Reliance, Italy’s Eni, and Thailand’s Tipco Asphalt to wind down their business with the Venezuelan state-owned company. The US Treasury Department previously gave these companies an exemption allowing them to receive Venezuelan crude in a swap deal for oil products.
Repsol has since late 2018 increased its swap transactions with PDVSA under the exemption. However, sources said that the company has not planned to charter vessels to lift Venezuelan crude after October. The most recent Venezuelan cargoes received by Repsol were delivered by tanker Delta Ios earlier this month. India’s Reliance Industries has received 4 million barrels of Venezuelan oil so far in September. It plans to import nearly 5 million barrels more in the coming weeks but plans no purchases of Venezuelan oil in November.
Italy’s Eni recently received a Venezuelan crude cargo under a swap deal. It plans to lift a Venezuelan oil cargo later in September and probably another one in October. However, it will likely halt trade with PDVSA after October. Thailand’s Tipco Asphalt has three Venezuelan heavy crude cargoes scheduled to load through October. The company said in a filing to Thailand’s stock exchange that it was taking steps to comply with the US State Department’s request to wind down business with PDVSA.
With its long-term customers leaving, Venezuela is strengthening trade ties with Iran. An Iran-flagged VLCC brought shipped condensate to the South American country earlier in September. Industry sources said the vessel is now loading Venezuelan oil for the state-controlled National Iranian Oil Company. Three Iranian tankers are reportedly sailing toward Venezuela, bringing about 820,000 barrels of gasoline.
