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Saudi tanker company: Venezuelan cargo within sanctions exemption period
11 Feb 2019by Jamey Bergman
With US sanctions policies creating uncertainty around Venezuelan crude cargoes, Saudi Arabia’s national tanker shipping company Bahri has hit back at an unnamed media outlet that apparently questioned one of its vessel’s activity
With US sanctions policies creating uncertainty around Venezuelan crude cargoes, Saudi Arabia’s national tanker shipping company Bahri has hit back at an unnamed media outlet that apparently questioned one of its vessel’s activity.
"Venezuela is a frequent loading destination for Bahri’s oil tankers, delivering cargoes to ports in India and China," Bahri’s statement read. "Hence, the recent voyage to the Port of Jose is not an exceptional or peculiar one, as lately stated by a media outlet."
Bahri offered clarification on the voyage of its Abqaiq VLCC, saying the vessel is in ballast condition with no cargo on board, on a voyage from the Red Sea to load cargo at the Port of Jose Terminal in Venezuela.
AIS information recorded by Genscape’s VesselTracker software confirms the vessel is at an anchorage off the Venezuelan coast near Puerto La Cruz. VesselsValue data shows the vessel was in transit in ballast conditions from 18 January to 4 February 2019.
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Bahri’s statement said the cargo it was picking up was for a customer in India.
"This cargo was contracted on 9 January 2019, well before the US sanctions were imposed against Venezuela on 28 January 2019. The Abqaiq voyage is expected to be completed before the end of the exemption period allowed to wind-down agreements."
US sanctions are targeting Venezuela’s state-owned energy company Petróleos de Venezuela (PDVSA) and have incorporated a wind down period for operations and contracts undertaken before sanctions were imposed.
The UK’s North P&I Club has reported that US sanctions against Venezuela have led to a build-up of tanker traffic in the Gulf of Mexico and Caribbean Sea.
Some Venezuelan crude cargoes destined for the US may be impacted by additional rules from the US Treasury Department’s Office of Foreign Assets Control aimed at oil trades and contracts with PDVSA.
On 25 January 2019, President Trump issued an executive order to the effect that PDVSA is included in the definition of “Government of Venezuela” which brings it and its US subsidiary Citgo under the list of sanctions-like blocking orders.
This and other political moves place PDVSA under notice of blocking measures against US persons or entities dealing with the company. West of England P&I Club reports the cut-off dates before the blocking measures are enforced as:
- Winding down pre-28 January 2019 existing PDVSA business is authorised until 27 February 2019.
- US employees/contractors of non-US companies have until 29 March to wind down pre-28 January 2019 contracts with PDVSA.
- Purchasing and importing petroleum/petroleum products from PDVSA to the US is permitted until 28 April 2019.
- PDV Holding Inc (PDVH) and Citgo can engage in business which involves importing petroleum/petroleum products to the US from PDVSA until 28 April 2019.
- Transactions, save as provided under 4 above, can continue with PDVH or Citgo until 27 July 2019.
- PDVSA business through Nynas is permitted until 27 July 2019.
- Any payments made directly to PDVSA through US banks will be blocked.
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