U.S. Sanctions Against Venezuela Still Biting - China Seizes 3 of 4 VLCCs

[Dan Warnick + 6,100]

So, you think China is going to be your savior?  Think again.

How Venezuela lost three oil supertankers to its Chinese partner

(Excerpt - Full story at the link)

NEW YORK/SINGAPORE (Reuters) - A shipping joint venture between Venezuela and China has fallen apart in the wake of U.S. sanctions, resulting in the South American nation losing three supertankers at a time when foreign shippers are reluctant to carry its oil, court documents show.

PetroChina Co Ltd, which had been state-run Petroleos de Venezuela’s partner in the Singapore-based joint venture CV Shipping Pte Ltd, took control of the three tankers between January and February, according the documents from a Singapore court reviewed by Reuters.

The transfer of the Junin, Boyaca and Carabobo very large crude carriers (VLCC) has not been previously reported.

It came after U.S. sanctions on PDVSA left the vessels without insurance, leading to millions of dollars in losses for CV Shipping and prompting PetroChina to place it in bankruptcy. The original purpose of the venture was to ship Venezuelan oil to China and some other export destinations.

PDVSA’s loss of the three tankers, which carry each up to 2 million barrels of oil, comes as it is more dependent than ever on its in-house fleet. Washington is intensifying its 18-month campaign to oust Venezuelan President Nicolas Maduro by sanctioning third-party vessels that transport the OPEC nation’s oil.

That has prompted major Greek shipping firms, some of whose vessels have been sanctioned for transporting Venezuelan crude, to stop working with PDVSA, prompting Venezuelan oil exports to collapse.

PDVSA has until now managed to retain a fourth VLCC from the venture, the Ayacucho.

But a U.S. glass manufacturer seeking to collect a $500 million arbitral award for Venezuela’s 2010 expropriation of two factories is suing in Singapore court to seize that tanker, Reuters reported last week.

[waltz + 140]

Not really surprising, Venezuela is not able to live up to their end of the contract; golly gee, because of excessive government interference.  Maybe, probably, oh yes certainly and the Chinese being once again noted as using usurious rates, say it ain’t so.

 

 I think I mentioned in another thread about the Chinese being done with Venezuela, missed the moon on that call.  Or not.

 

waltz

 

edited to say not a shot at Dan.

Edited August 12, 2020 by waltz