• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 31 mins China's Blueprint For Global Power
  • 1 min Here's your favourite girl, Tom!
  • 8 hours IMO 2020:
  • 9 hours Yesterday Angela Merkel stopped Trump technology war on China – the moral of the story is do not eavesdrop on ladies with high ethical standards
  • 42 mins Brexit agreement
  • 3 hours The Problem Is The Economy, Not The Climate
  • 1 day Idiotic Environmental Predictions
  • 17 hours The Ultimate Heresy: Technology Can't Fix What's Broken
  • 5 hours Australian Hydroelectric Plant Cost Overruns
  • 1 day NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 55 mins 5 Tweets That Change The World?
Alt Text

Is This The World’s Newest Oil Benchmark?

Abu Dhabi, the oil producing…

Alt Text

OPEC’s September Oil Production Falls To Near Decade-Low

OPEC’s oil production has fallen…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Venezuela’s PDVSA Fails To Meet Oil Supply Obligations

Venezuela’s state oil company PDVSA has told eight foreign clients it will be unable to supply the contracted volumes of crude oil, a company employee told S&P Platts.

"Among the affected clients due to the low availability of crude to export are Nynas, Tipco, Chevron, CNPC, Reliance, Conoco, Valero, and Lukoil, which will partially receive the volumes established by the contracts," the person said.

The amount the company will not be able to supply is close to half of the total committed volumes of this grade, Merey 16, for June. It only has 578,000 bpd of the grade available, while the total contracted volume is 1.271 million barrels daily. PDVSA’s total crude commitments for the month stand at 1.495 million bpd, but it only has 694,000 bpd available.

Plagued by mismanagement, corruption, and most recently a lack of investment money under the double weight of U.S. sanctions and lower oil prices, PDVSA has seen its production plummet over the last couple of years. S&P Platts estimates this plunge has wiped out as much as 900,000 bpd from the company’s daily production, with the latest daily average standing at 1.41 million bpd in April.

Earlier this month, an executive from India’s largest oil company, ONGC, said that PDVSA owes it US$444 million in payments due under a joint project between the state company and the overseas division of ONGC, OVL. Related: U.S. Asks OPEC To Boost Oil Production By 1 Million Bpd

“They paid us three installments and have not paid any money for more than six months,” OVL’s managing director Narendra Verma said at a news conference. According to OVL, Venezuela’s PDVSA has not paid dividends from the project to the Indian firm between 2009 and 2013, while no dividends have been declared after that.

Meanwhile, collapsing Venezuela has reportedly offered India a 30-percent discount on crude oil purchases, but only if India agrees to pay in El Petro. India doesn’t plan to use Venezuela’s ‘petro’ cryptocurrency to pay for crude oil imports from the Latin American nation, Indian Foreign Minister Sushma Swaraj said earlier this week.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play