PdV Orinoco ops recovering, China tax looms

Market: Crude oil, Natural gas
25/05/21

Venezuelan state-owned PdV's Sinovensa and PetroPiar joint ventures resumed operations yesterday after a ruptured natural gas line was repaired, but a looming Chinese tax threatens to slow operations again next month.

Sinovensa, PdV's Orinoco crude blending joint venture with Chinese state-owned CNPC, is currently producing about 45,000 b/d of 16°API Merey blend and should reach 75,000 b/d by week's end, a PdV official at the facility tells Argus.

PdV's PetroPiar Orinoco upgrading joint venture with partner Chevron is producing about 70,000 b/d of synthetic Special Hamaca Blend and aims to reach about 100,000 b/d by early June, a PdV manager at the upgrader said.

Plans to load 1mn bl of SHB on 28-30 May have been reprogrammed for the first week of June.

PdV is using storage tanks at PetroPiar and two other upgraders that are out of service — PetroMonagas and Petro San Felix — to support production and logistics.

The PetroPiar upgrader halted production when the gas line broke on 17 May. It continued running in recirculation mode during repairs.

A Jose terminal supervisor tells Argus the resumption of blending at Sinovensa and upgrading at PetroPiar will accelerate loadings and reduce a tanker backlog.

Among the Asia-bound VLCC and Suezmax tankers waiting to load or that have partially loaded at Jose are Maya, Xing Yei, Beyong and Eagle 1, according to PdV's latest terminal roster.

But PdV seems unlikely to meet its ambitious 600,000 b/d export target for May because of faulty loading equipment and a shortage of diluent needed to transport and process extra-heavy Orinoco crude.

More pressing is a new $30/bl Chinese tax on diluted bitumen, the category under which Venezuelan crude is imported into China, the Opec country's main market. The tax takes effect on 12 June.

China emerged as the top destination for Venezuelan barrels after the US imposed oil sanctions on Caracas in January 2019.

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15/05/25

IEA sees slightly better oil demand outlook

London, 15 May (Argus) — The IEA has nudged up its global oil demand growth forecasts for this year and 2026, citing better macroeconomic forecasts and the effects of lower oil prices. In its latest Oil Market Report (OMR), published today, the Paris-based watchdog raised its projected increase in oil consumption by 20,000 b/d to 740,000 b/d in 2025, bringing overall demand to 103.9mn b/d. It increased its oil demand growth forecast for 2026 by 70,000 b/d to 760,000 b/d. In its previous OMR the IEA cut its oil demand forecasts for 2025 by 310,000 b/d after the US' announcement of an array of import levies in April. But the IEA said today the tariff supply shock appeared less severe than initially implied, pointing to subsequent US trade arrangements with the UK and China. US talks with other countries continue. "Subsequent pauses, concessions, exemptions and negotiations are likely to attenuate the levies' permanence and economic impact," the IEA said. But it said policy uncertainty continued to weigh on consumer and business sentiment, and it sees oil consumption growth slowing to 650,000 b/d between now until the end of 2025, from 990,000 b/d in the first quarter of the year. Its demand growth forecast for 2025 is 320,000 b/d lower than at the start of the year. The IEA increased its global oil supply growth forecast by 380,000 b/d to 1.61mn b/d in 2025, with almost all the rise accounted for by the Saudi-led unwinding of Opec+ cuts. It nudged its oil supply growth forecast for 2026 up by 10,000 b/d to 960,000 b/d. Eight Opec+ members earlier this month agreed to continue accelerating the pace of their planned unwinding of 2.2mn b/d of crude production cuts for June. The IEA again revised down its supply growth forecasts for the US, mainly because of the effects of lower oil prices on US shale producers. It downgraded US growth by 50,000 b/d to 440,000 b/d for 2025 and by 100,000 b/d to 180,000 b/d for 2026, and said US tight oil production in 2026 would contract on an annual basis for the first time since 2020. The IEA said sanctions on Russia, Iran and Venezuela are a key uncertainty in its forecasts. It noted that Russian crude supply grew by 170,000 b/d in April as crude prices fell below the G7 $60/bl price cap. The IEA's balances show supply exceeding demand by 730,000 b/d in 2025 and by 930,000 b/d in 2026. It said global observed stocks rose by 25.1mn bl in March, with preliminary data showing a further rise in April. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Shale unable to absorb price decline: Continental

14/05/25

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14/05/25

Shale unable to absorb price decline: Continental

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Bolivian president bypasses reelection

14/05/25

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14/05/25

Bolivian president bypasses reelection

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Mauritania weaves GTA project into industrial strategy

14/05/25

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14/05/25

Mauritania weaves GTA project into industrial strategy

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Opec downgrades non-Opec+ supply growth forecasts

14/05/25

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14/05/25

Opec downgrades non-Opec+ supply growth forecasts

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