Report: Venezuela to Export Diluted Crude after 9-month Pause
Venezuelan state-run oil firm PDVSA this week will resume exports of diluted crude oil (DCO) for the first time in nine months, according to a document seen by Reuters.
Since U.S. trade sanctions were imposed on PDVSA in 2019, a lack of diluents, especially heavy naphtha, has hurt its ability to produce exportable grades from its largest production region, the Orinoco Belt. Its extra heavy oil must be diluted with naphtha or condensate for transportation and exports.
A key swap deal that provided Iranian condensate for crude https://www.reuters.com/business/energy/exclusive-under-us-sanctions-iran-venezuela-strike-oil-export-deal-sources-2021-09-25 has allowed PDVSA to alter its production and shipping strategies and build its stocks of DCO. PDVSA was receiving about 2.1 million barrels per month of condensate in exchange for supplying the Iranian National Oil Co (NIOC) with some 3.8 million barrels of its flagship Merey 16 crude.
But a recent accumulation of DCO in onshore tanks has forced PDVSA to dedicate a portion of its limited vessel fleet to floating storage, encouraging it to resume exports of the lower-quality grade to Asia.
https://www.marinelink.com/news/report-venezuela-export-diluted-crude-493376