Venezuela revamps crude oil output to favor Asian exports amid US ban

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Venezuela revamps crude oil output to favor Asian exports amid US ban

In the wake of a crippling US ban on its oil imports, the Venezuelan state-controlled oil firm, PDVSA, had been reshuffling one of its major processes previously engineered to supply US buyers in order to produce a blend heavy and light crude favored by Asian refiners, which were less capable of cracking synthetic hydrocarbons in comparison to US refiners, an internal document seen by a press agency had revealed on Friday, the 28th of June 2019.

In point of fact, a harsh US sanction on Venezuelan crude, which used to export about 5,20,000 barrels of heavy crude per day to United States, aimed at starving Maduro government’s revenue to force armed-forces backed socialist president Nickolas Maduro out of his office, had effectively halted all of its crude exports to United States since January this year.

Nonetheless, despite a US-ban, Venezuela, a founding member of OPEC (Organization of Petroleum Exporting Countries), had been seeking to ramp up its oil exports into the Asian refineries and as a part of its latest move to propel the grief-sickened nation’s economy forward, PDVSA joint venture, Petropiar would be converting its exportable synthetic crude to blend heavy and light oils, favored by Asian refiners, an internal PDVSA document detailing the strategy to lift up its crude oils’ price seen by a press agency had revealed on Friday (June 28th).

Adding that Asian refiners were better equipped to handle blended crudes, an energy analyst at Rystad Energy, Paola Rodriguez-Masiu said, “Asia has a low hydrocracking capacity compared with the United States”.

So far, Venezuelan state-controlled oil firm, PDVSA’s main customers in Asia had been China’s National Petroleum Corp, India’s Reliance Industries alongside Nayara Energy ESRO.M3 and Thailand’s Tipco Asphalt, PDVSA’s long-term supply contracts revealed.