Tankers pile up as Venezuela’s oil exports outpace its ports

Venezuela’s deteriorating oil export terminals are imposing a de facto ceiling on the country’s recovering crude exports, with tankers waiting as long as 30 days to load because of ageing infrastructure, power outages and crude-quality problems, according to shipping data, industry sources and documents, cited by Reuters.

The delays are complicating U.S. efforts to rapidly increase Venezuelan oil exports following a flagship agreement with global trading companies. Competition for limited infrastructure is expected to intensify as more partners of state oil company PDVSA prepare to market their shares of production independently under new contractual arrangements.

The last time Venezuelan oil customers faced delays of a similar duration was during a U.S. naval blockade imposed on the South American country late last year. The blockade formed part of a broader strategy that culminated in the capture of then-President Nicolas Maduro on January 3. Since then, interim President Delcy Rodriguez has pursued Washington’s strategy of reviving Venezuela’s oil exports.

Yet in recent months, PDVSA and its partners have been unable to increase exports beyond 1.25 million barrels per day despite rising crude production, declining inventories and strong global demand, vessel-tracking data showed.

More than two decades ago, when Venezuela’s oil production peaked above 3 million bpd, its terminals could handle more than 2.5 million bpd of exports, with vessels typically entering and leaving Venezuelan waters in less than a week.

The current loading problems have triggered disputes over demurrage charges, crude quality and vessel contamination, according to maritime documents, four sources and vessel-monitoring data.

“The speed of crude transfers from tanks to vessels is incredibly slow, which forces tankers to occupy docks for longer than their assigned loading windows. And if a ship arrives to discharge imports, it takes even longer due to lack of fuel storage capacity,” a PDVSA source said.

Venezuela’s oil ministry and PDVSA did not respond to requests for comment.

The delays are evident in the dozens of tankers waiting at Venezuelan anchorages, particularly around the northeastern port of Jose, which handles about 70% of the country’s total oil exports.

Company shipping reports reviewed by Reuters documented disruptions at Jose this year caused by equipment failures, quality problems and power outages during loading and unloading operations.

Even companies with preferential access to PDVSA facilities after decades of partnership, including U.S. oil major Chevron, are seeking ways to improve loading operations. Sources said Chevron has requested access to ports currently dedicated to domestic shipping. Chevron did not respond to a request for comment.

An oil export agreement between Venezuela and the United States, which has been extended several times, has allowed traders including Vitol and Trafigura to ship more than 140 million barrels of crude and fuel this year. Most of the cargoes have gone to the United States, while others have reached markets such as Europe and India that had not received Venezuelan oil for years, as Washington eases sanctions.

However, as the United States advances a $100 billion energy reconstruction plan for Venezuela focused primarily on increasing crude production, midstream and downstream projects — including repairs to terminals and refineries — have not been prioritised.

U.S. and Venezuelan officials highlighted the recovery in oil exports at two conferences in Houston this week, while acknowledging infrastructure problems that they said could be addressed through new investment.

“We are today in a phase of recovery, but the infrastructure is there,” PDVSA Vice President Jovanny Martinez said at one of the conferences. “There are deficiencies, and reliability must improve.”

By Tamilla Hasanova