Three Ships Carrying Oil From Venezuela Head To US Amid Storage Capacity Concerns

Three of 11 vessels chartered by Chevron began transporting oil from Venezuela to the United States on Thursday as export sanctions raised concerns over the country’s storage capacity. This came after the US announced that it would take control of Venezuela’s oil “indefinitely”.

Two more of the tankers were anchored at Bajo Grande refinery port in western Venezuela, while the remaining six were on their way to Caracas, according to an AFP analysis of ship-tracking data collated by Bloomberg and trade information platform Kpler.

Chevron is the only US company to have operations in Venezuela and booked the tankers as part of a regular schedule of crude shipments back to the US. One of its chartered tankers, the Ionic Anassa, was last recorded passing

Cuba on its way to Pascagoula Port in Mississippi, having loaded at Bajo Grande on January 4, according to shipping data by Bloomberg and Marine Traffic.

Another tanker called the Nave Photon was recorded north of Caracas on Thursday, heading for Port Freeport in Texas after having arrived at the Jose terminal in eastern Venezuela, on January 5. It was being closely followed by The Mediterranean Voyager, which also appeared to have picked up a shipment at Jose terminal, as per displacement data.

Two vessels, the Minerva Gloria and Searuby, were anchored at Bajo Grande on Thursday. Gloria appeared to be loaded, while Searuby appeared to be empty.

Storage Capacity Concerns

The latest assessment, based on radar images from December 30, indicates that onshore stocks, namely tanks, have exceeded 22 million barrels, nearly half of the country’s storage capacity.

Analysts from Kpler warned that the US blockade of Venezuelan exports is causing a buildup of oil in storage. “With loading activity now slowing sharply due to the naval blockade, Kpler analysts expect upcoming radar imagery to show further inventory builds,” said Emmanuel Belostrino, senior analyst at Kpler, in a report sent to AFP.

According to Kpler figures, at least 16.7 million barrels of crude oil were stored on board at least fifteen large tankers, used as temporary reservoirs near the Venezuelan coast, at the beginning of the week.

US Plans For Venezuelan Oil

Earlier, US President Donald Trump said Venezuela will turn over 30 million to 50 million barrels of sanctioned crude to the US. “This Oil will be sold at its Market Price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States!” he said on Truth Social platform.

Energy Secretary Chris Wright said the US would begin selling the oil that has been backed up for months amid sanctions, before moving to long-term oversight of production flows. “We’re just going to get that crude moving again and sell it,” he said. “We’re going to market the crude coming out of Venezuela – first this backed-up stored oil and then indefinitely going forward.”

Venezuela’s state-owned oil company, Petroleos de Venezuela (PDVSA), has acknowledged that it had entered “negotiations” to sell oil to the United States, on what it said would be the same terms as for other foreign customers. “The process… is based on strictly commercial transactions under terms that are legal, transparent and beneficial for both parties,” it said.

Under existing structures, PDVSA controls 50 per cent of operations in the country, Chevron holds about 25 per cent, joint ventures with China and Russia account for around 20 per cent, and European companies hold the remaining 5 per cent.

However, Venezuela’s interim President Delcy Rodriguez on Thursday slammed the US for claiming to indefinitely control her country’s oil wealth and dictate where profits can be spent. Rodriguez said any oil partnerships with the US must benefit the people of her country.

(with inputs from AFP)