Venezuelan oil exports to Europe set to renew after two years -document, sources By Reuters


© Reuters. The emblem of Italian vitality firm Eni is seen at a gasoline station in Rome, Italy September 30, 2018. REUTERS/Alessandro Bianchi

By Marianna Parraga

(Reuters) -A 650,000-barrel-cargo of Venezuela’s oil chartered by Italy’s Eni is about to set sail carrying the primary export of crude from the U.S.-sanctioned nation to Europe in two years, Refinitiv Eikon knowledge confirmed on Friday.

The U.S. State Division despatched letters to Eni and Spain’s Repsol (OTC:) in Could authorizing them to renew taking Venezuelan crude as a option to settle billions of {dollars} of unpaid debt and dividends owed by the OPEC-member nation.

A second tanker chartered by Eni, the very giant crude service (VLCC) Pantanassa, is at the moment navigating in direction of Venezuela and anticipated to load 2 million barrels of the identical grade, diluted (DCO), and take it to Europe, in keeping with the Eikon knowledge and a transport doc seen by Reuters.

That cargo is predicted to be delivered by Venezuela’s state-owned PDVSA later this month with an possibility for Eni to promote a portion of the crude to Spain’s Repsol for its Cartagena and Bilbao refineries, in keeping with the doc and sources.

The Malta-flagged Pantanassa is scheduled to load by way of ship-to-ship switch close to Venezuela’s Amuay port, the doc added.

Eni, Repsol and PDVSA didn’t instantly reply to requests for remark.

Venezuela’s Could oil exports plummeted to the bottom stage in 19 months over contract adjustments enforced by PDVSA to change most spot gross sales to prepayment, lowering the danger of unpaid cargoes. The change didn’t have an effect on clients below swap offers of debt fee agreements.

European, Asian and U.S. firms working joint ventures with PDVSA in Venezuela, together with Eni, Repsol, Chevron (NYSE:), ONGC Ltd, and Maurel & Promenade, have collected billions of {dollars} in pending debt because the authorities of then U.S. President Donald Trump suspended oil swaps used for exchanging Venezuelan oil for gasoline and debt funds.


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