Refinitiv Eikon data showed on Friday that Italy’s Eni (ENI.MI) has contracted to ship 650,000 barrels of Venezuelan oil to Europe. This is the first shipment of crude oil from the U.S.-backed country in two years.
In May, the U.S. State Department told Eni and Spain’s Repsol (REP.MC) that they could keep taking Venezuelan rough oil as a way for the OPEC country to pay back billions of dollars in missed payments and profits.
The next big hauler approved by Eni, the very large crude carrier (VLCC) Pantanassa, is currently heading toward Venezuela. It is expected to load up with 2 million barrels of weakened raw petroleum (DCO) of the same grade and take it to Europe, according to Eikon data and a transportation record.
According to the record and sources, PDVSA, a state-owned company in Venezuela, is expected to transport this cargo soon. It is also possible that Eni will sell some of the crude oil to Repsol (REP.MC) for its refineries in Cartagena and Bilbao.
The Malta-based Pantanassa is scheduled to load by boat-to-truck move near Venezuela’s Amuay port, according to the archive.
Eni, Repsol, and PDVSA didn’t respond quickly when asked for their thoughts.
Venezuela’s oil exports in May dropped to their lowest level in 19 months because PDVSA changed most spot deals to be paid for in advance. This made it less likely that cargoes would be left behind.
The change didn’t affect clients who had trade agreements or payment plans for debts.
European, Asian, and U.S. companies that work together with PDVSA in Venezuela, such as Eni, Repsol, Chevron (CVX.N), ONGC Ltd (ONGC.NS), and Maurel and Prom (MAUP.PA), have racked up billions of dollars in future debt since U.S. President Donald Trump shut down oil trades that were used to trade Venezuelan oil for fuel and debt payments. I understand more
