Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Oil tankers stuck offshore Venezuela after state oil firm fails to pay BP

Industry news
Industry news

Four tankers carrying over two million barrels of US crude are stuck at sea and cannot discharge at a Caribbean terminal because Venezuela’s state oil company has not yet paid supplier BP.

The cargoes are part of a tender Petroleos de Venezuela, known as PDVSA, awarded in March to BP and China Oil.

The deal was to import some 8 million barrels of West Texas Intermediate (WTI) crude so Venezuela could dilute its extra heavy crudes and feed its Caribbean refineries.

While three cargoes for this tender were delivered in April, seven other vessels, including BP’s four hired ones, are waiting to discharge, leaving up to 3.85 million barrels of WTI in limbo, according to news agency Reuters.

PDVSA did not immediately respond to a request for comment.

Its cash prolems, which also affected its oil imports late last year, have added to a backlog of tankers since March due to malfunctioning loading arms at Jose, Venezuela’s main crude port.

PDVSA initially offered to pay for the imports with Venezuelan oil, but negotiations for those swaps failed as the proposed loading windows and crude grades did not work for BP, according to Reuters sources.

The state oil firm has delayed payments to suppliers since 2015 as it has reacted to low crude prices, declining exports and recession. As a result, service firms including Schlumberger, Halliburton and Petrex have curtailed operations in the OPEC country.

The payment delays are also raising questions about who will pay for demurrage, or the daily costs for delays. Three of the BP tankers have been anchored for over 30 days.

As China already lifts Venezuelan crude as part of broader oil-for-loans deals, its companies have agreed on swaps for this tender, the sources said.

Issues with loading arms to receive tankers at Jose port have doubled wait times for shippers since March.

PDVSA said in a statement that installation of replacement equipment in the port’s southern dock were successfully concluded on Tuesday.

Some 30 dirty tankers are currently waiting around PDVSA’s ports in Venezuela and Curacao.

PDVSA has become one of the largest buyers of US crude since last month even with a narrow arbitrage that makes most exports unattractive, analysts have said, but payment delays could stymie its bid to continue imports.

More from Energy Voice

Latest Posts