Venezuela Resumes Light Crude Imports as Domestic Production Wanes
Venezuela's state-owned oil company, PDVSA, has begun regular imports of light crude due to declining domestic production of medium and light grades, causing supply chain disruptions for producing exportable blends.
The sanctions-hit country previously relied on a swap agreement with Iran that allowed PDVSA to import crude and condensate from 2021 to 2023 for diluting its heavy oil. However, disputes and unpaid debts have halted the exchange since last year, leaving PDVSA with limited options for foreign imports.
In December and January, PDVSA discharged cargoes of approximately 600,000 barrels of unidentified imported light crude at its main terminal in Jose. Tracking data indicates that the January shipment originated from China's Dongjiakou port, but the exact source of the crude remains unidentified. PDVSA has not responded to requests for comment.
Despite increased exports in January, including nearly 300,000 barrels per day (bpd) to the United States, PDVSA's challenges in securing enough diluents for oil blending have intensified. Production in Monagas North, a key region for producing Venezuela's lightest crude grades, has declined due to gas shortages for reinjection into oilfields.
A gas processing complex that suffered a significant fire in November has yet to fully restore supply to PDVSA's oilfields.
Venezuela imported approximately 73,000 bpd of Iranian condensate and crude in 2022, which reduced to 40,000 bpd in 2023. PDVSA also made irregular foreign crude purchases last year, averaging less than 15,000 bpd.
As foreign crude imports have diminished due to reduced trade with Iran, PDVSA has stabilized its discharge of imported heavy naphtha from joint-venture partners such as Chevron. This has helped reduce operational disruptions in the Orinoco Belt, Venezuela's primary oil production region.