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Dutch and Singapore firms beat US majors to first deals for Venezuelan oil
Posted on 1/12/26 at 7:52 am
Posted on 1/12/26 at 7:52 am
quote:
LONDON, Jan 12 (Reuters) - Global oil trading houses have emerged as early winners in the race to control Venezuelan crude flows, getting ahead of U.S. energy majors wary of credit and legal risks and securing a potentially lucrative business opportunity in the country with the world's largest crude reserves.
U.S. President Donald Trump said U.S. majors would invest billions of dollars in Venezuela to quickly rebuild its dilapidated oil sector following the U.S. capture of President Nicolas Maduro earlier in January. Trump met top oil executives at the White House on Friday as his administration outlines a long-term plan to raise $100 billion to boost Venezuelan oil output.
The first companies to secure any business in the wake of the U.S. military action in Caracas, however, were Dutch-based trader Vitol and Singapore-headquartered peer Trafigura, rather than U.S. majors.
The U.S. government tapped the giant merchant houses because they were better suited to quickly get Venezuelan oil exports flowing again, four industry sources familiar with the negotiations said.
quote:
Venezuela relies on oil exports for revenue, and has been starved of those proceeds for about a month under a blockade Trump imposed as he raised pressure on Maduro.
Washington and Caracas are finalizing a $2 billion deal to sell up to 50 million barrels of crude to U.S. refiners and other buyers - oil that had been stuck on ships in Venezuelan waters and in storage tanks because of the blockade.
quote:
The traders also won the Venezuelan oil export deals because they have a higher risk tolerance and are more nimble than major publicly traded oil companies, said three participants at the White House meetings.
Legal teams and advisors have discouraged some big U.S. oil producers from getting involved in the initial oil shipments due to the potential for Venezuelan creditors to seize the revenue, one of the sources said.
quote:
The traders also won the Venezuelan oil export deals because they have a higher risk tolerance and are more nimble than major publicly traded oil companies, said three participants at the White House meetings.
He (President Trump) issued an executive order blocking courts and creditors from impounding revenue from the sale of Venezuelan oil held in U.S. Treasury-controlled accounts, the White House said on Saturday.
Venezuela owes more than $150 billion in foreign debt. Among creditors are the same oil companies that Trump wants to help rebuild Venezuela's industry. ConocoPhillips and ExxonMobil are still trying to recover almost $14 billion related to asset expropriations 20 years ago.
Trump and his team have told the oil companies they need to invest and rebuild the sector first, and that any debt repayment would come later.
U.S. oil companies would also be more reluctant to take the compliance risk involved in selling oil from tankers that have been blacklisted by Washington for their involvement in sanctioned oil trade, three shipping sources said.
quote:
At the White House meeting with Trump, Exxon CEO Darren Woods called Venezuela "uninvestable" and said security guarantees and a reform of its hydrocarbon law were needed before Exxon could return to the country. Venezuela had twice expropriated Exxon's assets in the past, Woods said.
Trump on Sunday said he might block Exxon from investing in Venezuela. "I didn't like Exxon's response," he said.
Conoco CEO Ryan Lance said at the same meeting that his company was the largest non-sovereign creditor, with some $12 billion in pending compensation for expropriation of assets. Trump told Lance the U.S. would not look back at what had previously been lost in the country.
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Posted on 1/12/26 at 7:53 am to ragincajun03
Those aren't E&P companies. They have much lower risk in this situation, no hard assets in country.
This post was edited on 1/12/26 at 7:55 am
Posted on 1/12/26 at 7:55 am to ragincajun03
This is like the transfer portal. We have a bigger NIL budget than the Netherlands and Singapore.
Posted on 1/12/26 at 7:58 am to lsudave1
quote:
This is like the transfer portal. We have a bigger NIL budget than the Netherlands and Singapore.
Posted on 1/12/26 at 7:59 am to JL
Correct. Neither of those companies is drilling holes and building a network of production pipelines in the field.
Also have to wonder about the President's immediate response to Exxon's CEO just stating some facts about the current environment, economically and politically, for his company to invest billions on the spot in Venezuela. Seems a bit too overly sensitive. He shouldn't be offended by Woods's legit concerns.
Also have to wonder about the President's immediate response to Exxon's CEO just stating some facts about the current environment, economically and politically, for his company to invest billions on the spot in Venezuela. Seems a bit too overly sensitive. He shouldn't be offended by Woods's legit concerns.
This post was edited on 1/12/26 at 8:02 am
Posted on 1/12/26 at 8:02 am to ragincajun03
1. Venezuelan crude is not upgraded to come to the USA. The upgraders are for exports mostly to Europe.
2. None of the upgraders are operating. This is all 100% heavy crude, mostly very heavy class.
3. Chevron already has its "pipeline" from Venezuela to its heavy crude centric refineries.
4. The US never imported much more than 2.5 million BPD from Venezuela and that was for 11 major Gulf Coast refineries.
5. Eagleford "crude" would serve as excellent diluent to export to Venezuela. No refinery actually wants it other than minor blending. That crap is lighter than diesel.
2. None of the upgraders are operating. This is all 100% heavy crude, mostly very heavy class.
3. Chevron already has its "pipeline" from Venezuela to its heavy crude centric refineries.
4. The US never imported much more than 2.5 million BPD from Venezuela and that was for 11 major Gulf Coast refineries.
5. Eagleford "crude" would serve as excellent diluent to export to Venezuela. No refinery actually wants it other than minor blending. That crap is lighter than diesel.
Posted on 1/12/26 at 8:05 am to lsudave1
quote:
This is like the transfer portal. We have a bigger NIL budget than the Netherlands and Singapore.
There’s no way Brandon Oilfields signs with Netherlands or Singapore over USA
Posted on 1/12/26 at 8:07 am to CitizenK
quote:
2. None of the upgraders are operating. This is all 100% heavy crude, mostly very heavy class.
I’ve read that it is some of the dirtiest oil in the world.
Posted on 1/12/26 at 8:09 am to ragincajun03
I am pretty sure that ExxonMobil is trying to recover Mobil's investment in developing an eastern Orinoco Belt lease and building an upgrader at the coast. A friend was an engineer in project management of the field development portion. From there went to Kazakhstan to develop there. The Kazakh officials were worse than Venezuelan. Finally, to be assist manager at the Beaumont refinery then retire.
The target market for Mobil was Europe with intermediate upgraded crude.
The upgrader hasn't been operational for over a decade. The Chavez/Maduro regime doesn't believe in spending money on maintenance.
The target market for Mobil was Europe with intermediate upgraded crude.
The upgrader hasn't been operational for over a decade. The Chavez/Maduro regime doesn't believe in spending money on maintenance.
Posted on 1/12/26 at 8:23 am to ragincajun03
The Dutch are assholes.
Posted on 1/12/26 at 8:30 am to The Third Leg
quote:
I’ve read that it is some of the dirtiest oil in the world.
All crude oil is good oil, all refineries are different. Houston Refining is no longer in business because it didn't have access to Venezuelan very heavy crude.
Your sources don't know shiite from shinola about crude oil and refining. It did not become desirable in the early 1980s due price but from products made from it MADE MONEY.
Posted on 1/12/26 at 8:33 am to UptownJoeBrown
I've worked with the Dutch and they are more like Americans than the Brits, by my experience.
Posted on 1/12/26 at 8:36 am to CitizenK
quote:
All crude oil is good oil, all refineries are different. Houston Refining is no longer in business because it didn't have access to Venezuelan very heavy crude. Your sources don't know shiite from shinola about crude oil and refining. It did not become desirable in the early 1980s due price but from products made from it MADE MONEY.
Lol. Heavy = “dirty” As in, it’s loaded with impurities.
Agree with a retard on a point he makes and he is bound to get offended.
This post was edited on 1/12/26 at 8:38 am
Posted on 1/12/26 at 8:36 am to CitizenK
quote:
but from products made from it MADE MONEY
What products does Venezuelan crudes make that regular Gulf of America crude doesn't?
Posted on 1/12/26 at 8:38 am to ragincajun03
quote:
Dutch and Singapore firms beat US majors to first deals for Venezuelan oil
Next up: The US invades Holland and Singapore
Posted on 1/12/26 at 8:41 am to ragincajun03
quote:
Dutch and Singapore firms beat US majors to first deals for Venezuelan oil
Time for this guy to get to work.
Posted on 1/12/26 at 8:45 am to VolsOut4Harambe
Well he was just fired from M-Tex Oil, so he's looking for a new gig.
Posted on 1/12/26 at 8:46 am to The Third Leg
quote:
Lol. Heavy = “dirty” As in, it’s loaded with impurities.
Wrong, it has more carbon in the form of asphaltenes which is more profitable than gasoline. Carbon is not an impurity but is what gives oil its BTU energy value.
Posted on 1/12/26 at 8:51 am to CitizenK
Venezuela's oil is heavy and dense due to geological processes like bacterial degradation and subsidence, making it thick, viscous, and high in sulfur (sour), similar to cold peanut butter, requiring special equipment and diluents (like naphtha) to extract, transport, and refine, unlike lighter, sweeter U.S. shale oils. This "extra-heavy" oil, concentrated in the Orinoco Belt, is harder to process but valuable for specific U.S. Gulf Coast refineries built for such grades.
What Makes It Heavy & Sour?
Geological Formation: The oil in the Orinoco Heavy Oil Belt formed through long-term geological processes, including bacterial breakdown of lighter oil and subsidence, creating a dense, tar-like substance.
High Viscosity: It's so thick it barely flows, often described as oozing or having the consistency of cold peanut butter.
High Sulfur Content: It's "sour" (high in sulfur) and contains high levels of nitrogen, sulfur, and oxygen (NSO) compounds, making it harder to refine.
What Makes It Heavy & Sour?
Geological Formation: The oil in the Orinoco Heavy Oil Belt formed through long-term geological processes, including bacterial breakdown of lighter oil and subsidence, creating a dense, tar-like substance.
High Viscosity: It's so thick it barely flows, often described as oozing or having the consistency of cold peanut butter.
High Sulfur Content: It's "sour" (high in sulfur) and contains high levels of nitrogen, sulfur, and oxygen (NSO) compounds, making it harder to refine.
Posted on 1/12/26 at 8:51 am to CitizenK
quote:
Wrong
Interesting. Always thought Ven Crudes had higher sulfur and bsw. Didn't realize they were just as clean.
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