(Kallanish Energy, 11.Jun.2018) — Venezuela’s PDVSA has reportedly completed its first ship-to-ship (STS) transfer last week, in a move to tackle the severe bottleneck of tankers around its main crude ports.
Reuters reported the inaugural operation was with the Suezmax tanker Sonagol Kalandula for a Thai company’s refinery in Kemaman, Malaysia. The cargo, owned by Tipco Asphalt, is believed to be Venezuelan Boscan heavy crude. The oil tanker had been waiting to load since February.
Shipping data tracked by Kallanish Energy on Friday afternoon showed 13 oil tankers were anchored at one of Venezuela’s main ports, Jose. Reuters estimated 40 tankers were waiting in Venezuelan waters to load crude and refined products for exports.
The delays at the ports have mounted since May, when ConocoPhillips attempted to seize PDVSA’s assets in the Caribbean Ocean. To prevent this, PDVSA stopped using its facilities in the Caribbean islands for storing and loading export cargoes.
To alleviate the congestion, PDVSA is reportedly telling buyers they either accept partial supplies under the STS’s new terms or the company will declare force majeure in June. It’s said to have told customers it doesn’t have crude available to fulfill its contractual obligations.
Customers waiting for cargoes include the U.S.’s Chevron and Valero Energy, India’s Nayara Energy and China’s CNPC and PetroChina. The backlog at the ports is estimated at 24 million barrels.
The sea-transfer is expected to increase the purchase cost by $1 per barrel and it’s not clear who will foot the bill – PDVSA or the buyers.