PdV oil exports to China dip in first quarter

OREANDA-NEWS. Venezuelan state-owned PdV exported less crude oil and refined products to China in the first quarter compared with a year earlier, with declines in market-priced shipments as well as supply linked to the repayment of loans.

According to Venezuela?s energy ministry, PdV exported about 1.17mn b/d of crude oil and products to Asia in the first quarter, down by about 40,000 b/d or 3.3pc from the same period in 2014. China accounted for all of the decline.

Oil exports to China fell by 57,000 b/d or 7.3pc to 721,000 b/d in the first quarter.

PdV invoiced 244,000 b/d or roughly a third of its China-bound exports in first-quarter 2015 at market price, down by 49,000 b/d from a year ago on lower demand in China, the ministry said.

The other two-thirds or 477,000 b/d of PdV's total exports to China in the first quarter were booked as payment for oil-backed loans to Venezuela's central government, down by 7pc from 485,000 b/d a year ago.

China Development Bank and other state-owned Chinese institutions have granted Venezuela's central government and PdV a combined \$50bn in oil-backed loans from 2007-15, including \$5bn last month to finance oil and power projects in Venezuela involving Chinese partners, contractors and suppliers.

CDB also granted PdV a \$4bn loan in 2013 to triple Sinovensa's crude-blending capacity to 330,000 b/d in 2017. PdV and Chinese state-owned CNPC are 60:40 partners in Sinovensa.

Currently about \$26bn in loans remain outstanding, including the combined \$9bn borrowed last March and in 2013.

PdV's exports to India, its second largest market in Asia, averaged 415,000 b/d in the first quarter, up from 403,000 b/d in 2014.

PdV also exported 27,000 b/d of refined products to Malaysia and 8,000 b/d of products to Japan during first quarter 2015 compared with 18,000 b/d and 12,000 b/d, respectively, in 2014.

PdV is seeking to almost triple its crude and products exports to Asia to over 3.16mn b/d in 2019, with China and India combined lifting up to 2.5mn b/d from PdV within five years, the ministry said.