Repsol’s refineries in Spain, including the Cartagena plant, will receive close to 2 million barrels of Venezuelan crude in February. This move marks a new chapter in the energy trade between Caracas and Madrid, spurred by recent changes in US sanctions policy.
Transportation and energy agreements in place
According to loading schedules seen by international agencies, shipments are being made from Port José, a terminal operated by the Venezuelan state-owned PDVSA. Venezuelan state-owned PDVSAon board Suezmax type vessels. The first shipment sailed at the beginning of the month and the second is nearing completion.
These dispatches are the result of commercial agreements between the Swiss multinational Trafigura and Repsol. Trafigura, together with Vitol, recently obtained a license from the U.S. Treasury from the U.S. Treasury Department that allows it to trade hydrocarbons from Venezuela. These companies have stored crude in terminals in the Caribbean and are now distributing it to refineries in both Europe and North America.
Repsol has shown interest in maintaining a steady supply of Merey oil, a heavy blend that suits the capabilities of its facilities. The Spanish company, together with France’s Maurel & Prom, maintains relations with PDVSA in the framework of joint ventures, whose regime was recently reformed by the Venezuelan government to attract foreign investment.
Legal reforms and the return of Venezuelan crude oil to Europe
Venezuela’s Executive Vice President, Delcy Rodriguez, held meetings in Caracas with representatives of both energy companies after the approval of the new organic hydrocarbons law. new hydrocarbons organic law. This reform provides six months to renegotiate the terms of participation of international partners in oil projects.
This return of Venezuelan crude oil to the European market comes after a long period of trade restrictions. Spain had not imported oil from Venezuela since the first quarter of the previous year, when previous authorizations were revoked. The new licenses open the way for European refineries to diversify their supply sources in a global context of high demand and geopolitical reorganization of energy supply.
Source: Reuters
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