• 13 hours PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 15 hours Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 17 hours Syrian Rebels Relinquish Control Of Major Gas Field
  • 18 hours Schlumberger Warns Of Moderating Investment In North America
  • 19 hours Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 20 hours Energy Regulators Look To Guard Grid From Cyberattacks
  • 21 hours Mexico Says OPEC Has Not Approached It For Deal Extension
  • 23 hours New Video Game Targets Oil Infrastructure
  • 1 day Shell Restarts Bonny Light Exports
  • 1 day Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 1 day Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 2 days British Utility Companies Brace For Major Reforms
  • 2 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 2 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 2 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 2 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 2 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 2 days Rosneft Signs $400M Deal With Kurdistan
  • 2 days Kinder Morgan Warns About Trans Mountain Delays
  • 2 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 3 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 3 days Russia, Saudis Team Up To Boost Fracking Tech
  • 3 days Conflicting News Spurs Doubt On Aramco IPO
  • 3 days Exxon Starts Production At New Refinery In Texas
  • 3 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 4 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 4 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 4 days China To Take 5% Of Rosneft’s Output In New Deal
  • 4 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 4 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 4 days VW Fails To Secure Critical Commodity For EVs
  • 4 days Enbridge Pipeline Expansion Finally Approved
  • 4 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 4 days OPEC Oil Deal Compliance Falls To 86%
  • 5 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 5 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 5 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 5 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 5 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 5 days Aramco Says No Plans To Shelve IPO
The U.S. Shale Play To Watch In 2018

The U.S. Shale Play To Watch In 2018

The original U.S. shale gas…

The Natural Gas Market Is Set To Boom

The Natural Gas Market Is Set To Boom

With the new lower-for-longer oil…

Venezuelan Oil Tankers are Launched and then Abandoned at the Dock

Venezuelan Oil Tankers are Launched and then Abandoned at the Dock

Over the last 14 months, Venezuela has held launching parties for three new oil tankers, a clear sign of the nation’s ambitions to expand its fleet as it prepares to diversify into the Asian markets.

One glaring problem stands in the way. The tankers, built at shipyards in Iran, Argentina, and China have never actually arrived at Venezuela, in fact they have not left the shipyards where they were built.

The new tankers were part of Ex-President Hugo Chavez’s plan to stimulate the shipbuilding industries in Iran, China, Argentina, and Brazil (all allies to the socialist country), and try to reduce US power. PDVSA, the nation’s state-owned oil company, is struggling from falling production volumes and a tight cash-flow, and hoped that by increasing its own fleet size, it could avoid high lease prices that are costing it hundreds of millions of dollars a year.

Related article: Brazil Pre-Salt Reflects Changing Face of Energy Investment

An internal report from March shows that PDVSA leased 75 tankers, paying as much as $15,000 a day for each tanker.

The three tankers launched represent just a small percentage of the 42 vessels PDVSA ordered back in 2006 as part of its plan to replace its entire fleet by 2012. A total of five tankers have actually set sail.

Some analysts have suggested that part of the problem for the unknown delays is that Venezuela, by trying to develop its allies shipbuilding industries, is using shipyards that lack some of the most modern shipbuilding technologies, and therefore take much longer than other larger yards which could build the tankers in three to four years.

Gustavo Gonzalez, the president of the Venezuelan merchant marine officers’ association, explained to Reuters that “when a vessel is launched to the sea, it is because it is ready. The delivery normally occurs 2-3 months after the launching.”

Sebastian Aguilar, a spokesman for the Rio Santiago shipyard in Argentina, said that the “Eva Peron is still at the dockyard. It was launched in July 2012 and is currently in the last stage, getting equipment ready before its final delivery.”

Related article: Deadly Explosion at Venezuelan Oil Refinery a Result Sabotage

Iran’s former commerce minister states that the Sorocaima is ready for delivery, and just waiting at the Sadra shipyard.

PDVSA’s Sorocaima
PDVSA’s Sorocaima. (Arabian Gazette)

And the Carabobo, being built at the Bohai shipyard in China, is not yet ready for navigation, and so not available for delivery.

Why then the elaborate launching parties?

Whatever the reason for the delays, it is clear that Venezuela’s plans to expand its fleet are stumbling, and it will be forced to once more pay hundreds of millions on leasing tankers to make its deliveries.

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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