Venezuelan oil exports to Europe set to resume after two years

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

June 17 (Reuters) – A 650,000-barrel-cargo of Venezuela’s oil chartered by Italy’s Eni (ENI.MI) 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 (REP.MC) in Could authorizing them to renew taking Venezuelan crude as a technique 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 provider (VLCC) Pantanassa, is at the moment navigating in direction of Venezuela and anticipated to load 2 million barrels of the identical grade, diluted crude oil (DCO), and take it to Europe, in line 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 (REP.MC)for its Cartagena and Bilbao refineries, in line with the doc and sources.

The Malta-flagged Pantanassa is scheduled to load through 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, decreasing the chance of unpaid cargoes. The change didn’t have an effect on prospects beneath swap offers of debt cost agreements.

European, Asian and U.S. corporations working joint ventures with PDVSA in Venezuela, together with Eni, Repsol, Chevron (CVX.N), ONGC Ltd (ONGC.NS), and Maurel & Promenade (MAUP.PA), have amassed billions of {dollars} in pending debt for the reason that authorities of then U.S. President Donald Trump suspended oil swaps used for exchanging Venezuelan oil for gasoline and debt funds. learn extra

Reporting by Marianna Parraga; Modifying by Gary McWilliams

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