First US crude export to Latam goes to Venezuela

OREANDA-NEWS. February 05, 2016. Venezuelan state-owned oil company PdV has bought a 550,000 bl cargo of WTI crude, making it the first export of US crude to Latin America since restrictions on exports were lifted in December.

The shipment arrived at Curacao's Bullen Bay terminal on 28 January, aboard the Eagle Kuantan from an unspecified US Gulf coast port, officials from Venezuela's energy ministry told Argus. It will be blended with Orinoco extra-heavy crude to yield a Merey 16°API crude.

Less than a handful of US crude exports have been reported since the 40-year-old restrictions on oil exports were lifted on 18 December, including two shipments to Europe in January.

Despite Venezuela's massive oil reserves, PdV has been importing light crudes since mid-2015, mostly African grades. The company does not produce sufficient light crude locally to feed its refineries and allocate incremental volumes for blending with Orinoco extra-heavy crudes.

Venezuelan energy ministry officials tell Argus PdV will likely buy more US crude in 2016.

"PdV will buy at the best price offered and currently crude shipped from US Gulf ports to Venezuela is cheaper than imports from Africa," a ministry official said.