PDVSA offers spot Merey, Boscan crude for March following US sanctions
Petroleumworld 02 25 2019
PDVSA is offering 5.8 million barrels of crude oil and diluted spot crude because of US sanctions, according to sources and PDVSA tenders.
Traditional customers of Venezuelan crude grades, such as Merey 16, Boscan, Bachaquero and diluted crude oil, did not submit bids for nine shipments scheduled between March and June.
"Lukoil Panamericas LLC did not submit bids for three oil shipments of 400,000 each [of] Boscan. Lukoil also did not submit offers for another three shipments of 400,000 barrels each of Bachaquero crude," said a market source close to the negotiations. "Due to the fact that Lukoil did not make any offer for the Boscan and Bachaquero crude, the rejection of the price negotiation for the April-June 2019 period by Lukoil is recorded," the source added.
Lukoil's rejection leaves PDVSA free to look for other buyers, the source said.
Russia's Rosneft also failed to bid for 1.5 million barrels of Merey 16 crude and 1.5 million barrels of DCO.
"These shipments are included in the contracts signed between PDVSA and Lukoil for the payment of debts, which in addition to crude include refined products," said a PDVSA official responsible for monitoring the contracts. "For these shipments previously committed to Rosneft, PDVSA activated the backup procedure clause, which allows it to place the crude oil with other customers in the volumes corresponding to March," said the source.
PDVSA will also carry out a tender to offer a shipment of 400,000 barrels of Boscan crude, which must be loaded at the Bajo Grande terminal in western Venezuela. Originally this crude was assigned to Chevron as payment for loans and to provide cash flow for PDVSA. Chevron had a 40:60 joint venture with PDVSA the Boscan field, located in western Venezuela, but updated data on Boscan field production is not available.
Bachaquero and Boscan are heavy crudes of 11.8 degrees API and 2.88% of sulfur and 10.8 degrees API and 4.77% of sulfur. Merey 16 is an upgrader crude, diluted with light crude oil of 16.4 degrees API and 2.99% sulfur. DCO is an upgrader crude diluted with naphtha of 16.5 degrees API and 3.25% of sulfur.
The administration of US President Donald Trump unveiled sanctions on PDVSA January 28 that served as a de facto ban on US crude imports of Venezuelan oil and an immediate ban on US exports of diluent to Venezuela. The new sanctions require any payment for crude from PDVSA to be deposited into blocked accounts within the US. The funds would ultimately be transferred to a new Venezuelan government, led on an interim basis by Juan Guaid?, if and when Nicol?s Maduro relinquishes power.
On February 1, the US Treasury also gave non-US companies three months to wind down transactions with PDVSA that involve the US financial system, essentially prohibiting sales of PDVSA crude and products in dollars.
We invite you to join us as a sponsor.Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.
Story by Staff from Platts / SPGlobal.
spglobal.com 02 25 2019
Hit your target - Advertise with us
PW 300.000 plus request per week
Copyright© 1999-2019 Petroleumworld or respective author or news agency. All rights reserved.
We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions Petroleumworld.com as the source.
Other stories you have to get authorization by its authors. Internet web links to http://www.petroleumworld.com are appreciated.
Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!
We invite all our readers to share with us
their views and comments about this article.
Write to email@example.com
By using this link, you agree to allow PW
to publish your comments on our letters page.
Any question or suggestions,
please write to: firstname.lastname@example.org
Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels