Venezuela cuts oil supply to Citgo as Russia’s Rosneft gets more

3 Aug 2017   Venezuela

Venezuela’s state-run PDVSA has reduced crude sales to its U.S. refining unit Citgo Petroleum while increasing supply to Russia’s Rosneft ( ROSN.MM ), following a plan signed in May to catch up on overdue deliveries, according to PDVSA documents, sources from the company and its joint ventures. Venezuela’s oil output has declined since 2012 with the fall accelerating this year amid a lack of investment and payment delays to suppliers. Almost all of Petróleos de Venezuela’s customers are receiving reduced volumes. That includes the United States, which has received less Venezuelan crude oil this year. PDVSA agreed in the catch-up plan to compensate Rosneft for the delayed cargoes, since the oil is being sent in lieu of payment for loans. Venezuela’s Oil Minister Nelson Martinez at a forum in St Petersburg in June said Rosneft would receive some 70,000 barrels per day (bpd) as payment for […]

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