NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

BP receives its first Venezuelan crude cargo under swap deal

Published 29/06/2016, 21:06
© Reuters. Signage for a BP petrol station in London
BP
-
CL
-
ROSNq
-

HOUSTON (Reuters) - Britain's BP Plc (L:BP) this month received a Venezuelan crude cargo from state-run PDVSA, according to Thomson Reuters trade flows data, the first since the companies agreed on a swap arrangement to settle pending payments for U.S. oil shipments.

BP and China Oil won a tender launched by PDVSA in March to be supplied with U.S. and African light oil during the second quarter of this year. The light oil is needed to dilute Venezuela's extra heavy output and for processing at Caribbean refineries.

After cash-strapped PDVSA did not make payments on time, BP in May halted further discharges of cargoes of U.S. crude at the port of Curacao.

Then a swap agreement was reached involving deliveries of Venezuelan oil to BP as payment for the U.S. crude, a source close to the talks said earlier in June.

Aframax tanker Grimstad, chartered by BP and carrying some 500,000 barrels of Venezuelan Merey crude, arrived in Pascagoula Anchorage and Lightering Area in the U.S. Gulf Coast on June 11. It has been waiting to discharge since then.

BP has not had access to Venezuelan crude since 2013, when its unit TNK-BP sold its stake in a crude upgrader at the Orinoco belt to Russia's Rosneft (MM:ROSN).

BP still needs to receive more cargoes from PDVSA to cover all payments it is owed and this is why several BP tankers have still yet to unload in Curacao, according to traders.

As of June 29, 2.05 million barrels of U.S. crude in three tankers are still waiting to unload, while a fourth cargo entered PDVSA's Bullenbay terminal in Curacao this week to start delivering.

© Reuters. Signage for a BP petrol station in London

A unit of Russia's oil company Lukoil has also been importing cargoes of Venezuelan crude in the United States since late 2015 under a similar swap agreement with PDVSA.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.