In a swift response to the changing political landscape in Venezuela, major oil companies and trading houses are urgently negotiating to secure tanker fleets and establish safe transfer operations for Venezuelan crude destined for the United States. This rush follows the recent ouster of President Nicolas Maduro and a statement from US President Donald Trump indicating Venezuela could turn over up to 50 million barrels of previously sanctioned oil.
Logistical Nightmares and Old Vessels
Four sources familiar with the developing plans revealed that companies including Chevron, Vitol, and Trafigura are actively competing for US government approvals to export this crude. Trafigura has reportedly informed the White House that its first vessel could load within the next week. The primary challenge lies in Venezuela's deteriorated infrastructure. For months under a US blockade, the country has been storing oil in aging, poorly maintained tankers and has nearly filled its onshore storage tanks.
These storage vessels are not only old but also under sanctions, creating a significant liability. Even if the US grants specific licenses, other ships cannot directly interact with sanctioned vessels due to strict insurance and liability rules. Furthermore, the onshore tanks themselves have suffered from years of neglect, adding another layer of risk for any party attempting to load the oil.
Shipping Firms Step Up Transfer Plans
To navigate these hurdles, specialized shipping companies are looking to expand their operations in the region. Maersk Tankers and American Eagle Tankers (AET) are among the firms aiming to increase their ship-to-ship transfer activities in Venezuelan waters, according to three sources. One potential solution involves Maersk Tankers replicating a complex ship-to-shore-to-ship logistics model it previously used in Venezuela's Amuay Bay.
Maersk already maintains a presence in the nearby islands of Aruba and Curacao, which are common locations for transferring Venezuelan oil, though such operations are more expensive there. The company stated that its 17 employees in Venezuela are safe and that ocean services continue with only minor delays, emphasizing a limited but monitoring presence.
Competition and Capacity Constraints
The race to move oil is facing multiple bottlenecks. A shipping source highlighted a shortage of smaller vessels needed to ferry crude from large storage ships to piers, compounded by inadequate maintenance of port machinery. Meanwhile, companies are fiercely competing for limited loading slots at Venezuela's primary Jose oil terminal, which has inherent capacity and speed restrictions.
Chevron, a key joint venture partner in Venezuela, is aggressively working to maintain its privileged access to these terminals while also organizing its own fleet of vessels. On another front, AET, which already manages Chevron's shipments of Venezuelan crude to the US, is being approached by other potential clients to expand its transfer capacity in the area. Both AET and Chevron did not immediately comment on these developments.
While the potential supply could match the 500,000 barrels per day Venezuela once sent to the US before sanctions, draining the accumulated inventory from both tankers and onshore storage within 90 to 120 days will be a formidable task. Adding to the operational complexity, an industry source in Venezuela noted that companies, including Chevron, Vitol, and Trafigura, are already sourcing naphtha. This lighter product is essential for blending with Venezuela's heavy crude to reduce its density for easier transport and refining.
