US sanctions oil shippers for defied US imposed sanctions on Cuba and Venezuela

PB Tankers

The FSO Alba Marina, blacklisted because her operator allegedly transported Venezuelan petroleum to
Cuba on a different vessel

- Treasury delists two oil shippers for cutting Cuba ties
- Platts Analytics sees Venezuelan oil output falling to 650,000 b/d by end 2020

By Meghan Gordon / Platts

WASHINGTON
Petroleumworld 09 26 2019

The US Treasury Department Tuesday sanctioned four oil shipping companies and four tankers for moving Venezuelan crude and refined products to Cuba.

The action targets Cyprus-based Caroil Transport Marine, which operates the sanctioned chemical/product tankers Carlota C, Petion, and Sandino. It named Panama-based shippers Trocana World, owner of Petion, and Tovase Development, owner of Sandino.

Treasury also named the Giralt crude tanker and its Panama-based owner Bluelane Overseas.

At the same time, Treasury delisted two tankers for discontinuing trade with Cubametales: the Greek-flagged New Hellas crude tanker owned by Lima Shipping and the Panama-flagged Leon Dias chemical/oil tanker owned by Serenity Maritime.

"Treasury recognizes the actions that Serenity Maritime Limited and Lima Shipping Corporation took to ensure that these entities' respective vessels no longer support the economic interests of the illegitimate former Maduro regime," Treasury said in a statement.

In July, Treasury sanctioned Cubametales, Cuba's state-run oil import and export company, for continuing to import crude and other products from Venezuela in exchange for helping the Maduro regime with defense and security.

Venezuelan oil output averaged 750,000 b/d in August, down from 1.6 million b/d in January 2018, according to the US Energy Information Administration.

S&P Global Platts Analytics expects Venezuelan production to fall to 650,000 b/d by December 2020.

The US imposed sanctions on PDVSA in January, effectively creating a US embargo on imports of Venezuelan crude.

Treasury Secretary Steven Mnuchin said Tuesday the US continues to take strong action against the Maduro regime.

"Maduro's Cuban benefactors provide a lifeline to the regime and enable its repressive security and intelligence apparatus," Mnuchin said in a statement. "Venezuela's oil belongs to the Venezuelan people, and should not be used as a bargaining tool to prop up dictators and prolong the usurpation of Venezuelan democracy."

Story by Meghan Gordon from SPGlobal Platts.

spglobal.com / 09 25 2019

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