Iranian Tankers Arrive in Venezuela with 1.22 Million Barrels of Crude
TEHRAN (Tasnim) – Media reports citing documents from the state oil company PDVSA indicated that two Iranian tankers arrived in Venezuela with approximately 1.22 million barrels of Iranian crude and 2 million barrels of condensate.
They arrived in Venezuelan waters this month and are expected to discharge their cargoes in the coming days at Venezuela's Jose terminal.
Huge, a very large crude carrier (VLCC) operated by the National Iranian Tanker Company, has been identified as one of the tankers (NITC).
In response to US sanctions, the two countries have increased trade. Earlier this year, the Naftiran Intertrade Company Ltd and other state-owned enterprises signed a 110-million-euro contract with PDVSA to renovate a Venezuelan refinery and supply the company with oil.
PDVSA depends on South Pars condensate from Iran to convert its heavy oil to exportable grades. Iranian crude oil is also refined in South America to make motor fuel.
Under a swap agreement signed in the second half of last year, Iran's condensate shipments helped Venezuelan PDVSA maintain its oil output, which had been severely hampered by US sanctions.
PDVSA's swap contract with the National Iranian Oil Company (NIOC) ensures a steady supply of condensate, a high-value light crude, to be used as a diluent.
The bituminous crude from Venezuela's largest producing region, the Orinoco Belt, must be mixed before it can be transported and exported.
Venezuela imported 2 million barrels of Iranian condensate in 2020 and 4.6 million barrels in 2021, despite US oil sanctions.
Under an agreement signed in 2020, the two countries exchanged Iranian gasoline for Venezuelan jet fuel.
Iran’s supply of condensate helps Venezuela stabilize exports of Orinoco's crude blends and allows its own lighter oil to be refined in the country to produce badly needed motor fuel.
In the face of the sanctions, the Islamic Republic has stepped in to help its South American ally with engineers, refined products and spare parts for its oil industry.
Last year, Venezuela began receiving a shipment of catalysts from Iran to help it produce fuel. It came after Iran sent more than a dozen flights to Venezuela to help restart the Cardon refinery and alleviate acute gasoline shortages.
The US government has said it is “concerned” about increased cooperation between Iran and Venezuela in their oil sector.
Venezuelan President Nicolas Maduro made an official visit to Iran in June, inking a 20-year partnership agreement aimed at improving bilateral cooperation in various fields such as technology, agriculture, oil and gas, petrochemicals, tourism and culture.
Earlier this month, Maduro said his country had received an “advanced” oil tanker – the third built by Iran and delivered to the South American country.
The fourth and last tanker will join PDVSA’s fleet in 2024 as part of a contract signed in 2006. They are built by Iran Marine Industrial Company (Sadra) in the Persian Gulf port of Bushehr.
