If the US cuts off relationships with Venezuela, will there be a boom in Asian tanker tonne-mile demand as it seeks resources elsewhere? Discuss this and other tanker matters at the Asian Tanker Conference in Singapore. Book your place now.
Contents
Contents
Read the views of the experts:
Publications
Publications
Events
Events:
Publications
Publications
Contents
Contents
Read the views of the experts:
Events
Events:
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.
- Report: security conditions deteriorating in Venezuelan ports
- If 2018 has been unremarkable, expect fireworks in 2019
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.
Related to this Story
Events
Passenger Ship Webinar Week
27 Apr 2021
ONLINE
Tanker Shipping & Trade Webinar Week
10 May 2021ONLINE
Carbon Capture & Storage Webinar Week
18 May 2021ONLINE
Vessel Optimisation Webinar Week
24 May 2021
Quick Links
Copyright 2020 Riviera Maritime Media Ltd.
London Office
Riviera Maritime Media Ltd,Mitre House, 66 Abbey Road,
Enfield EN1 2QN, UK
Phone: +44 20 8364 1551
Email: info@rivieramm.com
Singapore Office
Riviera Maritime Media Singapore Pte Ltd,1 Fusionopolis Place, 03-20, Galaxis,
Singapore 138522
Phone: +65 6809 1278
Email: info@rivieramm.com
