Government officials in Caracas and Washington are holding talks to export Venezuelan crude oil to U.S. refineries, according to five government, industry, and maritime sources cited by Reuters. Such an agreement would divert some of the oil currently destined for China and help the national oil company. PDVSA to avoid further production cuts.
Venezuela reportedly has millions of barrels of crude oil already loaded onto tankers or stored in reservoirs, but blocked by the embargo imposed by the US president. Donald Trump since mid-December. This tightening of sanctions was part of increased pressure against the government of Nicolas Maduro, before his capture by US forces last weekend.
According to two sources, an initial agreement could involve the reallocation of shipments originally intended for China, the main buyer of Venezuelan crude for the past decade, particularly since the 2020 US sanctions targeting oil trade with Caracas.
Such an arrangement would increase the volume of Venezuelan oil exported to the United States, a flow currently entirely controlled by ChevronChevron is the only American group authorized to operate in the country under a special license. It currently ships between 100,000 and 150,000 barrels per day of Venezuelan crude to American refineries and appears to be the only company capable of loading and exporting oil without hindrance despite the embargo.
PDVSA has already had to reduce its production due to a lack of storage capacity. Without a quick solution to sell its crude oil, the company may be forced to make further cuts, according to a source close to the matter.
Discussions are focusing on potential sales mechanisms—such as auctions allowing American buyers to bid on cargoes—and on granting American licenses to PDVSA's trading partners who could then secure supply contracts. A source also indicated that Venezuelan oil could eventually help replenish the United States' strategic oil reserves.
The White House, PDVSA, and Venezuelan authorities have not officially reacted. However, the Venezuelan Ministry of Petroleum accused Washington of wanting to seize the country's oil reserves and denounced Maduro's arrest as a "kidnapping."
Before the imposition of energy sanctions, US refineries on the Gulf Coast—capable of processing Venezuelan heavy crude—imported up to 500,000 barrels per day from Venezuela. It remains to be seen how PDVSA, still under sanctions, could financially benefit from these potential sales.
