Lucia Kassai
A small fleet of ships booked by Chevron is sailing to Venezuela as the company emerges as the only exporter of the country’s oil following the ouster of President Nicolás Maduro by US forces.
Chevron is poised to export more Venezuelan oil this month than last, with at least 11 ships scheduled to arrive in the Venezuelan government-controlled ports of Jose and Bajo Grande, according to preliminary data compiled by Bloomberg.
All eyes are on the Houston-based company to see if it will begin shipping out more Venezuelan crude after US President Donald Trump said he wanted “total access” to the country’s vast reserves. Chevron is the only Western firm allowed to produce and export crude oil in Venezuela amid American sanctions, and it operates under a licence granted by the US Treasury. It is responsible for nearly 25 per cent of the nation’s production and oversees the crude through delivery to fuel-makers in the US Gulf and east coast markets.
“Chevron remains focused on the safety and wellbeing of our employees, as well as the integrity of our assets. We continue to operate in full compliance with all relevant laws and regulations,” it said in a statement on Tuesday.
Chevron continues to load oil as at least 12 vessels that were bound for Venezuela turned away under heavy US military presence in the Caribbean to enforce a blockade on outgoing oil. Two tankers used in the transport of sanctioned crude were caught in the US naval blockade. The US is now chasing a third tanker known as Marinera, or Bella 1, CBS News reported.
Some vessels of the dark fleet were able to safely leave Venezuela over the weekend, right after US forces captured Maduro, according to TankerTrackers.com. At least four tankers, and maybe as many as 16, got through the blockade, it said, without providing the names of the vessels. Tankers of the shadow fleet typically turn off or spoof their transponders to disguise their location.
The 11 Chevron-chartered vessels scheduled to arrive in January would be the most since October when 12 tankers loaded. In December, nine tankers loaded oil, data shows, a figure that includes Chevron shipments and oil seized by the US government. Overall, the volume of the 11 tankers amounts to 152,000 barrels a day of oil, up from roughly 123,000 barrels a day loaded for the US in December.
One of the 11 ships has already loaded and two others are currently docked, vessel movements tracked by Bloomberg show. All the oil goes to refineries in the US, including Valero Energy Corp, Phillips 66 and Marathon Petroleum Corp.
The oil major is hauling away more oil, helping to ease a domestic glut caused by export backlogs under the naval blockade. Unless Chevron takes away more oil, the country’s state oil agency, Petroleos de Venezuela SA, may need to start shutting in wells. Production could slump to 600,000 barrels a day by next month, Kpler Ltd said.
Trump is banking that oil companies will step in with big investments to revive production in Venezuela after years of corruption and neglect ravaged output, though crude producers are likely to proceed cautiously.
Some oil companies are wary of pouring tens of billions of dollars into the country over the next decade. Executives are looking for guarantees of physical and financial security amid festering concerns about the stability of a post-Maduro government.
The president is set to meet with energy executives at the White House within the next week.
The parties have discussed a possible meeting Thursday or Friday that would include Trump, Energy Secretary Chris Wright and Interior Secretary Doug Burgum, according to two people familiar with the matter. The timing remains fluid, a White House official said.
Secretary of State Marco Rubio also may attend the sit-down that’s being planned, said the people, who asked for anonymity because the deliberations are private.
The conversations reflect Trump’s eagerness to secure Venezuela’s mammoth oil reserves as a potential source of revenue and an opportunity to expand US energy dominance. They come just days after the US military operation that led to the capture of leader Nicolás Maduro.
Bloomberg
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