Letter from South America: Venezuela secures Iranian lifeline
The crude-for-diluent swap deal with Iran is underway
The Venezuelan oil industry continues to defy the odds by finding a way to survive even in the most desperate of times. The announcement last month of a deal between state-owned Pdvsa and fellow state oil firm National Iranian Oil Company—essentially to swap diluent for crude—means Venezuela can limp along for the foreseeable future. And it seems as though the deal does not just exist on paper: the first very large crude carrier laden with 2mn bl of Orinoco Belt heavy crude is departing Venezuelan waters this month, after disgorging its original cargo of Iranian condensate in the sanctions-strapped South American nation. As the Iranian oil industry is also dealing with US sanctions, the two
Also in this section
24 April 2024
But even planned exploration activity is unlikely to reverse declining output from mature fields
23 April 2024
Cheaper Russian barrels and lower overall crude prices have helped cut key oil consumer’s import bills in election year
22 April 2024
Pursuing three different goals as part of the same package may mean achieving none of them
22 April 2024
Beijing’s renewed targeting of NOC management could threaten investment