• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 7 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 11 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 14 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 22 mins Why is Strait of Hormuz the World's Most Important Oil Artery
  • 2 hours Level-Headed Analysis of the Future of U.S. Shale Oil Industry
  • 10 hours Struggle For Supremacy: Kremlin Condemns Alleged U.S. Ultimatum To Turkey Over Missile Deal
  • 8 hours Another surprise 'build'
  • 7 hours Trump bogged down in Mideast quagmire. US spent $Trillions, lost Thousands of lives, and lost goodwill. FOR WHAT? US interests ? WHAT INTEREST ? . . . . China greatest threat next 50 years.
  • 3 hours Apple Bid To Buy Tesla in 2013 For $240 a Share
  • 7 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 6 hours California's Oil Industry Collapses Despite Shale Boom
  • 7 hours IMO 2020 could create fierce competition for scarce water resources
  • 7 hours IMO2020 To scrub or not to scrub
  • 15 hours Solar Cheaper than Coal
  • 12 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
  • 8 hours Global Warming Making The Rich Richer
A Value Play Too Good To Ignore

A Value Play Too Good To Ignore

The coal industry may be…

The Driving Force Behind Nigeria’s Energy Renaissance

The Driving Force Behind Nigeria’s Energy Renaissance

Nigeria has traditionally been one…

Rosneft’s Head Berates Maduro For Oil Cargo Delays

Sechin Putin

Rosneft’s chief executive, Igor Sechin, last week flew to Caracas to have words with President Maduro regarding delays in the shipments of Venezuelan crude that Caracas had agreed to send to Russia as a repayment for cash, Reuters reports, citing sources close to the talks.

“He brought information showing that they were meeting obligations with China but not with them,” one of the sources told Reuters. “They’re running around in PDVSA because of this.”

What’s more, another source said the Russian delegation was not the only one visiting Caracas: a Chinese delegation was also there.

Russia and China are pretty much the only countries left that are willing to lend Caracas a hand amid U.S. sanctions and falling oil production that have combined to create a severe economic crisis. China is the bigger benefactor, having poured as much as US$50 billion into Venezuela since its troubles began, which could explain why Caracas is giving priority to shipments to China.

Yet Russia has also been generous: Reuters has calculated that Moscow has lent Caracas some US$17 billion since 2006. What’s more, Rosneft has an option to purchase a majority stake in the crown jewel of PDVSA, Citgo, which the Venezuelan company used as collateral for one of the latest loans granted by the Russian company.

More Reuters calculations show that PDVSA has been falling behind in its shipments to China as well. At an average daily rate of shipments at 463,500 for the period between January and August, PDVSA was about 60 percent compliant with the terms of its contracts. Daily shipments to Russia averaged 176,680 bpd over the same eight-month period, which constituted a compliance rate of 40 percent, Reuters noted.

Meanwhile, oil production in Venezuela is falling relentlessly. Over the past 12 months, it shed 37 percent and now stands at 1.17 million barrels daily.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • RefCoor on November 26 2018 said:
    Do the math on these shipment levels to Russia & PRC. China is being shorted about 180K BPD and Russia about 250K BPD. Those are the short shipment levels totaling 430K BPD. Now add what they actually shipped, a total of 630K BPD, and you get 1,060K BPD that is their committed shipment level to these two countries.

    If they are only producing 1,170K BPD that leaves only 110K BPD for everything else. Hence, the Russkies and ChiComms are taking a short hit of 430K BPD so Maduro can stay in power with Raul's backing. It is not good to short a Russian oligarch. Very unhealthy business practice which generally results in a pinprick of Polonium 210. The question is only when.
  • Uncle Sam on November 26 2018 said:
    Russia needs the cash to feed their hungry workers. Venezuela needs the cash to feed their hungry workers. Both nations are using the same socialist business plan.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News