Venezuela’s Ageing Oil Terminals Leave Tankers Waiting Up to 30 Days
Infrastructure failures, power outages and crude quality problems at Venezuela’s oil terminals are delaying tanker loadings and limiting exports despite higher production. Congestion is particularly acute near the Jose port, which handles about 70% of the country’s oil exports.
Despite rising production, withdrawals from storage and strong international demand, state energy company PDVSA and its partners have recently been unable to lift exports above 1.25 million barrels per day, vessel monitoring data showed. More than two decades ago, when Venezuelan output exceeded 3 million bpd, the country’s terminals handled over 2.5 million bpd of exports and vessels generally entered and departed its waters within a week.
The present bottlenecks are complicating efforts backed by the United States to accelerate Venezuela’s oil export recovery. They are also creating disputes over demurrage, crude quality and contamination of ships.
A PDVSA source said slow transfers from storage tanks were forcing vessels to remain alongside beyond their scheduled loading windows. Operations can take even longer when ships arrive to discharge imports because available fuel storage capacity is limited. Venezuela’s oil ministry and PDVSA did not respond to requests for comment cited in the source material.
Congestion is especially visible at anchorages near the Jose terminal on Venezuela’s northeastern coast. Jose handles about 70% of the country’s total oil exports. Company shipping reports recorded interruptions during the year linked to malfunctioning equipment, electricity outages and quality issues affecting loading and unloading operations.
Chevron, which has longstanding access to PDVSA facilities, is among the companies seeking alternatives to improve cargo handling, including possible access to ports currently assigned to domestic shipping, according to sources. Chevron did not comment.
An export arrangement with the United States has allowed traders including Vitol and Trafigura to move more than 140 million barrels of Venezuelan crude and fuel during the year. Most of those cargoes went to the US, while others reached Europe and India as sanctions were eased.
However, a proposed $100 billion reconstruction effort is primarily directed towards increasing crude production. Projects involving terminals and refineries have not received the same priority, even though officials from both countries acknowledged the infrastructure challenge at conferences in Houston. PDVSA Vice President Jovanny Martinez said the industry was in recovery but needed improved reliability and new investment.
Available berth capacity is also reduced by vessels that have remained at Venezuelan facilities since the period of tighter US sanctions. At PDVSA’s Guaraguao terminal in Puerto La Cruz, a tanker formerly known as Syrma and later renamed Consul has occupied berth space for about two years. In mid-August, only two of Guaraguao’s seven docks were fully operational, according to a terminal worker.
Limited capacity has pushed some customers towards other terminals and ship-to-ship transfer areas where oil leaks can stain tanker hulls, generating further delays and costs. PDVSA is also facing demurrage claims worth thousands of dollars for vessels held beyond their loading windows, with the company reportedly agreeing to settle such charges only in crude.
Competition for terminal access could intensify as oil contracts move to new terms introduced by an energy reform that took effect in late July. PDVSA is expected to retain control over its terminals and cargo scheduling for the time being.