According to Lloyds List Intelligence, in 2020 around 150 ships transported Venezuelan oil to Asia, mainly via Malaysia to be moved to China and Indonesia By Felicity Bradstock for Oilprice.com – Venezuela appears to be following in Iran’s footsteps by starting to ignore U.S. sanctions on its oil industry to once again develop its substantial crude reserves. After years of stalling and losing out on international investment as well as vital revenues, Venezuela looks to be set to increase its oil production, fostering relationships with key export markets that are willing to risk U.S. retaliation to the move.

Over the last few weeks, Iran has built upon the foundations it made in 2021 to re-establish its international position as a major oil producer. This move saw Iran develop key partnerships with China and Russia in a bid to overcome U.S. sanctions in order to increase its oil production and recommence exports. Now it seems that Venezuela is taking similar action, finding ways to overcome its oil sanctions [...]

Much of this success is linked with the socialist country’s recent partnership with Iran. The dilutants, such as naphtha, purchased from Iran are essential to reducing the viscosity of the Venezuelan crude in the Orinoco heavy-oil belt. The thinners are transported from Iran to Venezuela via complex routes to avoid U.S. detection. Juan Fernández, former Executive Director of Planning at PDVSA, explains, “Oil production estimates for the belt currently add up to 450,000 to 500,000 barrels a day and that is due mainly to Iran’s help.”

Jan 2022