• 4 minutes US-backed coup in Venezuela not so smooth
  • 7 minutes Why Trump will win the wall fight
  • 11 minutes Oil imports by countries
  • 13 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 2 hours Climate Change: A Summer of Storms and Smog Is Coming
  • 19 hours Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 20 hours The Quick Read On MBS's Tour of Pakistan, India And China
  • 21 hours Iran Starts Gulf War Games, To Test Submarine-Launched Missiles
  • 20 hours BMW to add 2,000 more jobs at Dingolfing plant
  • 19 hours Teens For Climate: Swedish Student Leader Wins EU Pledge To Spend Billions On Climate
  • 21 hours Venezuela: Nicolas Maduro closes border with Brazil
  • 2 days Itt looks like natural gas may be at its lowest price ever.
  • 22 hours Saudi A to Splash $100 Bln on India
  • 2 days Amazon’s Exit Could Scare Off Tech Companies From New York
  • 15 hours Washington Eyes Crackdown On OPEC
  • 17 hours Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 1 day NEW FERUKA REFINERY

Venezuela Sells Oil Refinery Stake To Cuba

PDVSA

Venezuela has sold its stake in the Cienfuegos refinery to its partner in the joint venture, Cuba. Venezuela’s state oil company PDVSA held 49 percent in the refinery, and according to a former government official from the South American country, Cuba took over the stake as payment for debts that had been incurred from tanker rentals and professional services, Reuters reported.

Based on reports from Cuban media, it seems that the official takeover was the natural conclusion of a de facto takeover: Cuban daily Granma noted that the Cienfuegos refinery has been operating as a fully Cuban state facility since this August.

The refinery has a capacity of 65,000 barrels of crude daily, but in August this year it only processed about 24,000 bpd, the Cuban daily said. What’s more, Venezuela’s oil industry troubles led to a change in the grades it sent to Cienfuegos to heavier ones that are more difficult to process.

Cienfuegos produces fuels for the Cuban market, which relies on Venezuelan crude oil to satisfy more than two-thirds of its fuel demand. Yet since 2014, deliveries of Venezuelan oil have declined consistently, and are now 40 percent lower than three years ago, which has prompted Cuba to look elsewhere for the commodity.

Related: The ‘Unknown Unknowns’ That Threaten U.S. Shale

Earlier this year, Cuba received a Russian crude delivery from Rosneft, and the Russian company has indicated it was willing to expand its cooperation with the Caribbean island.

There are few foreign companies with a presence in the Cuban energy market. One of these, Australian Melbana Energy, earlier this year announced that it had planned a drilling campaign in an onshore block that could contain as much as 44 billion barrels of crude, of which 637 million barrels recoverable. If Melbana makes a successful discovery, Cuba would in the future be able to diminish its dependence on imported crude and fuels.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Laurence Daley on December 15 2017 said:
    Being in business with the Castro regime

    is like doing the same with the Mafia

    they rob you blind

Leave a comment

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