• 4 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 7 minutes Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 13 minutes NordStream2
  • 2 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 1 hour California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 2 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 hours "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 4 days "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 2 days U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 2 days Nord Stream - US/German consultations
  • 4 days An Indian Opinion on What is Going on in China
  • 408 days Class Act: Bet You've Never Seen A President Do This.
  • 4 days Can Technology Keep Coal Plants Alive and Well?
  • 2 days Australia sues Neoen for lack of power from its Tesla battery
  • 1 day Forecasts for Natural Gas
  • 4 days Storage of gas cylinders
  • 5 days Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.

Iran And Venezuela Strike Oil Swap Deal

Iran and Venezuela have struck a deal to swap heavy Venezuelan crude for Iranian condensate, Reuters has reported, citing unnamed sources familiar with the deal.

According to these sources, the swaps are set to begin this week and last for six months, although they could be extended. The imports of Iranian superlight crude will help Venezuela revive its falling oil exports amid U.S. sanctions that, among other problems, have cut off the country's access to the light oil that is used to blend with its superheavy to make it exportable.

For Iran, the deal will bring in heavy crude it could sell in Asia, the Reuters sources also said. The diluted Venezuela crude will also likely go to Asian buyers.

Reuters also reported that, according to the U.S. Treasury Department, the deal could constitute a breach of sanctions, to which both Venezuela and Iran are subjects.

"Transactions with NIOC by non-U.S. persons are generally subject to secondary sanctions," the Treasury Department said in response to a Reuters request for comments on the deal. It added that it "retains authority to impose sanctions on any person that is determined to operate in the oil sector of the Venezuelan economy."

Despite the sanction noose, Venezuela has been ramping up its oil exports, generating vital revenue. According to a recent Reuters report, the country, which is home to the world's largest oil reserves, exported more than 700,000 bpd of crude in July—the highest daily export rate since February.

Most of the oil went to China and Malaysia, although the latter is usually only a stop along Venezuelan oil's trip to China. The same report noted that three of the five crude oil blending facilities in the Orinoco Belt were operational, and another crude upgrader was preparing to restart operations after a year's pause.

Iran, meanwhile, recently revealed plans to attract some $145 billion in oil and gas investments from both local and foreign sources.

"We plan to invest $145 billion in the development of the upstream and downstream oil industry over the next four to eight years, hence I welcome the presence of domestic and foreign investors in the industry," Javad Owji, Iran's new oil minister, said during a meeting with executives from China's oil giant Sinopec.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • DoRight Deikins on September 27 2021 said:
    I'm a strong advocate for grace and mercy, have great love for the people of Iran (since going to school with some and living there for a time) and all those from Venezuela that I have met, and distress for the suffering that they all are going through at this time. They are all wonderful people, good, good people.

    But can you say paper tiger and Neville Chamberlain? It appears that the US administration believes that they can operate from a position of weakness. I hope they are correct, but historically that leads to war, and I believe it will be a war that the will change the world more than WW2.
  • Mamdouh Salameh on September 27 2021 said:
    This swap deal is mutually beneficial to both Venezuela and Iran. Iran gets paid for diluents supplies to Venezuela in extra-heavy Venezuelan crude oil while Venezuela manages to produce more crude using Iranian diluents.

    The deal is primarily one aimed at helping two friendly countries overcome the atrocious US sanctions.

    Venezuela’s crude oil exports have been on the rise almost approaching 800,000 barrels a day (b/d) and its crude production is heading towards 1.5 million barrels a day (mbd) by the end of the year with three of the five crude oil blending facilities in the Orinoco Belt operational and another crude upgrader preparing to restart soon.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News