January 06, 2025 [Reuters]- Venezuela’s oil exports rose 10.5% last year despite political instability and changes to the U.S. sanctions regime on the country, as partners of state oil company PDVSA took more cargoes under licenses granted by Washington.
As President Nicolas Maduro gets ready to start his third term in office next week following disputed election results, the OPEC country’s oil exports rose for a second consecutive year, providing revenue to contribute to economic growth.
U.S.-sanctioned PDVSA (PDVSA.UL) and its joint ventures exported an average of 772,000 barrels per day last year, the most since 2019 when energy sanctions were first imposed by Washington, according to vessel movement data and company shipping reports.
The gains could be in jeopardy after President-elect Donald Trump takes office. Trump put strict sanctions on Venezuela in his first term and has selected officials who could seek to cut U.S. imports of Venezuelan oil.
Outgoing President Joe Biden’s administration gave incentives to encourage a presidential election in Venezuela, but after basic conditions for fair voting were not secured it ended a broad license for the energy sector, instead issuing individual licenses to exporters.
A large portion of the year’s export gains came from U.S. oil major Chevron’s shipments of Venezuelan crude to the U.S. under a license in place since early 2023. That license has allowed the producer to recover millions of dollars in outstanding debt from Venezuela.
CHINA TOP RECEIVER, U.S. SECOND
In total Venezuela’s oil exports to the U.S. soared 64% to some 222,000 bpd last year, making it its second-largest export market behind China, which took 351,000 bpd, down 18% compared to the prior year.
U.S. authorizations to European producers including Eni, Repsol and Maurel & Prom similarly lifted exports to Europe, which almost tripled to some 75,000 bpd last year.
Exports to India bounced to 63,115 bpd in 2024 from 10,300 bpd the previous year, the data showed.
As Venezuela struggled with frequent refinery outages last year, exports of crude and fuel to its political ally Cuba, which has been facing a severe energy crisis, fell to some 32,000 bpd from 56,000 bpd the previous year.
Overall monthly exports declined to 756,000 bpd in December from a peak of 974,000 bpd in November as one of PDVSA’s four crude upgraders had operational problems, the documents showed.
Venezuela’s imports of fuel and key diluents to produce exportable crude grades increased to some 92,000 bpd from 60,000 bpd in 2023, mostly through U.S.-authorized swaps with its oil-producing partners and customers, according to the data.
The country’s crude production rose 17% to 914,000 bpd in the first 11 months of 2024, according to figures reported to OPEC, from some 780,000 bpd in the same period of 2023.
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