PdV seeks light crude supply for up to five years

OREANDA-NEWS. July 28, 2015. Venezuelan state-owned PdV is seeking offers for supply of one to five years for up to 70,000 b/d of sweet crude higher than 40°API to blend with Orinoco extra-heavy crude for export, the energy ministry said.

Offers are due today.

PdV has purchased about 9mn bl of foreign light crude since October 2014 that it uses as diluent with 8-10°API Orinoco crude to yield mostly 16°API Merey, much of which is exported to China and India.

The company has purchased 4mn bl of Saharan Blend from Algeria's state-owned Sonatrach, over 2mn bl of Russian Urals and 3mn bl of Nigerian light crude.

PdV?s own light crude production has been declining in recent years, while output from the vast Orinoco oil belt has crept up slightly in conjunction with foreign partners such as Chevron.

The Orinoco crude cannot be transported or exported on its own. At present, much of the production is blended with 30pc imported naphtha to produce diluted crude oil (DCO) and upgraded into lighter synthetic crude, or blended with lighter grades.