Marcelo del Pozo/Bloomberg
The cargo, on the Gerd Knutsen tanker, was loaded in January 2019 but never reached its destination on the U.S. Gulf Coast because of the escalation of U.S. sanctions and has been siting iddle in at the Port of Jose, in Venezuela a terminal run by PDVSA
- Citgo weighs insurance claim over seized crude oil cargo
- Cargo returns to Venezuela this week after floating for a year
By David Wethe and Lucia Kassai / Bloomberg
Petroleumworld 02 17 2020
A crude tanker stuck at sea for over a year has become the latest front in the battle over Venezuela's oil riches after being seized this week.
Citgo Petroleum Corp. , led by appointees of Venezuelan opposition leader Juan Guaido, is weighing filing an insurance claim this week for theft after a tanker holding almost 1 million barrels of oil was seized by Venezuela, according to a person familiar with the matter.
The contested oil, purchased by Citgo and loaded on the tanker Gerd Knutsen, floated offshore Venezuela for more than a year. In December, a shadow board of Citgo directors chosen by President Nicolas Maduro attempted to seize the cargo but was blocked by a U.S. court. The roughly 960,000 barrels of Venezuelan crude that was once bound for a Citgo refinery in the U.S. is instead discharging this week in the Port of Jose at a terminal run by Petroleos de Venezuela SA , the national oil company controlled by Maduro, according to people familiar with the matter and ship-tracking data compiled by Bloomberg.
See also: After Year at Sea, Oil Caught in Venezuelan Tug-Of-War Docks
The oil tanker and its cargo worth about $50 million is caught up in Venezuela's power struggle, which heated up after Guaido's first official visit to the White House to meet President Donald Trump earlier this month. After the meeting, Maduro's regime moved to imprison six former Citgo executives who'd been living under house arrest. The tanker was stuck in limbo after the U.S. imposed tougher sanctions on PDVSA in late January 2019 to curtail Maduro's income from oil sales.
The cargo that was discharged consisted mostly of diluted crude oil, as well as 30,000 barrels of Pedernales crude, the person said.
Citgo and PDVSA didn't immediately return messages seeking comment, while a representative at Venezuela's Information Ministry declined to comment.
— With assistance by Patricia Laya
By David Wethe and Lucia Kassai from Bloomberg
bloomberg.com 02 14 2020
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.
Copyright© 1999-2020 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