Venezuela Reopening
Overview
The lifting of US sanctions on Venezuela has triggered a new flow of Venezuelan crude into the US Gulf. These grades are being sold by merchant traders on a “delivered US Gulf” basis. Oil produced in Venezuela is heavy, sour, and asphalt-rich, and requires specialised refining units, such as cokers, for full processing. US Gulf coast refineries were built for this purpose, and have the appetite to process large volumes of these crudes.
Argus has launched three new price assessments for Venezuelan crude oil to better reflect the new market. Effective Monday, 9 February, Argus assesses Merey, Hamaca, and Boscan, all on a “delivered US Gulf” basis. See key price pages for more details.
Price assessment details
Argus Merey del USGC
While offers have emerged for Venezuelan crudes in India, Asia and Europe, trades for Merey have only been completed in the USGC, where multiple refiners have purchased cargoes of the grade. Transactions have occurred on a delivered USGC basis and against the Ice Brent pricing benchmark, which is widely used to price Latin American grades on the water.
Argus Boscan del USGC and Argus Hamaca del USGC
Due to a current lack of liquidity for these two grades, Argus prices will initially be assessed on the basis of other market information for similar grades in the region, general tendencies in the sour markets around the USGC and quality spreads to Merey, which are widely discussed by market participants and are relatively stable. Should activity for these grades pick up, Argus will also take into consideration any bids, offers and deals that emerge in the spot market to further inform the assessments.
Expectations are that sales will remain concentrated around the USGC on an Ice Brent basis for the foreseeable future. Argus will also publish an equivalent differential for all three Venezuelan grades against the Argus WCS Houston price, given Venezuela crude is a close alternative to Canadian supplies, and more specifically WCS. This WCS basis price will allow for hedging as there are actively traded futures swaps based on the Argus WCS Houston price on both major exchanges. These financial contracts settle on the month average of Argus WCS Houston daily published prices.
Related news and analysis
PdV's tanker arm reemerges to control oil ports
PdV's tanker arm reemerges to control oil ports
Houston, 13 August (Argus) — Venezuela's state-owned oil and products shipping arm, PdV Marina, has moved into a more central position in managing crude and product shipments as the US has exerted control over the sector since its 3 January takeover, sources say. PdV Marina now handles all operations related to oil ports, taking that function from the national ports authority, Bolivariano de Puertos, a source in the operations department of PdV Marina who asked not to be named said. The arm is also now also overseeing loadings out of Venezuelan ports by Trafigura and Vitol, the two international traders most active in Venezuela after the US government approved them to market unsanctioned Venezuelan oil. PdV Marina receives reports and daily cargoes schedules but most of the shipments are carried out on tankers not owned by PdV Marina. PdV Marina also in November had suspended a joint venture with Cuban state-owned Cubametales, which was a previous buyer of Venezuelan crude and has been sanctioned by the US since 2019. Venezuela — previously Cuba's main supplier of oil — has sent no new shipments to Cuba since the US arrested former leader Nicolas Maduro on 3 January. PdV Marina previously focused more on management of its own fleet, which consisted of 22 tankers before former president Hugo Chavez came to power in 1999. But lack of proper maintenance has reduced the number of working tankers to five, pushing PdV to use more chartered vessels. PdV Marina's involvement in Venezuela's crude flows had dwindled in recent years, especially after a series of corruption allegations related to the mismanagement of funds meant to modernize and repair tankers under the former administration of Adan Chavez in 2020. Some $3bn in cyptocurrency funds that Venezuela's government said in 2023 that it had lost was also related to port management, as much of the funds dealt with unpaid crude already shipped by Venezuela . The port management change is part of a broader strategy by the US to exert its influence both in Venezuela's oil shipments as well as at ports of call in central and South America, a former supervisor at PdV Marina and current lecturer in maritime and energy issues said. The source also asked not to be named. PdV through PdV Marina has been part of the International Ship and Port Facility Security Code mechanism crested in 2004 by the International Maritime Organization to strengthen security and safety measures. Improving infrastructure and overhauling Venezuela's oil ports and tankers to better comply with the code will be essential for Venezuela to further increase it oil output from 1.2mn b/d, industry sources have said. US refiners have indicated that they are eager to absorb more Venezuelan crude , and US imports from Venezuela hit their highest in nine years at 743,000 b/d in the latest week, according to preliminary US Energy Information Administration data. By Jose Chalhoub Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Venezuela talks await 2015 assembly leaders
Venezuela talks await 2015 assembly leaders
Caracas, 5 August (Argus) — Venezuela's dueling assemblies again delayed negotiations meant to lead to democratic elections as the representative of the last US-recognized legislative body has not arrived in Caracas. Dinorah Figuera — who is heading the assembly that voters chose in 2015 in the last election the US regards as fair — is set to arrive in Caracas from Madrid, Spain, later on Wednesday, along with other delegates, sources with the acting assembly said. Negotiations with the acting national assembly led by Jorge Rodriguez could start as soon as Thursday, but will have multiple phases the sources said. Negotiations were originally delayed from 1 August and then from Wednesday. Talks will be held at the La Carlota convention center in Caracas — not the national assembly building — with the agenda focused on earthquakes relief efforts, a roadmap for elections and political rights and guarantees. By Jose Chalhoub Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Chevron Venezuelan output up 15pc in 1H 2026
Chevron Venezuelan output up 15pc in 1H 2026
New York, 31 July (Argus) — Chevron has increased its output from three joint ventures in Venezuela by 15pc in the last six months to 280,000 b/d. "We're anticipating that we will be able to grow up to 50pc between now and the end of 2028," chief financial officer Eimear Bonner told analysts today after the company reported second quarter results. While the company is in active negotiations with the government in connection with further projects in Venezuela, the terms will have to be "competitive and they have to compete in our portfolio for capital," Bonner said. That said, Chevron is "very encouraged" with where it stands in relation to tapping additional opportunities in Venezuela, she added. Given this year's rally in oil prices caused by the war in the Middle East, the debt owed by the Venezuelan government to Chevron is being paid down at a faster rate. The company expects to fully recover its debt by early in 2027. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Double trouble for Caracas
Double trouble for Caracas
Earthquake recovery takes centre stage, but the same uncertainties about upstream investment wait in the wings, write Carla Bass and Carlos Camacho Caracas, 10 July (Argus) — Venezuela's twin earthquakes in late June left crude and natural gas production infrastructure largely intact, despite killing thousands, even as they shifted the political ground in ways that are still emerging. The country's oil operations are concentrated in the Orinoco heavy oil belt east of Caracas and around Lake Maracaibo to the west — outside areas hardest hit by the quakes, such as the city of La Guaira. The destruction killed more than 3,800, a count that is expected to rise as thousands are still missing. The earthquakes came as Venezuela is trying to rebuild its economy and oil industry in the wake of the US' 3 January incursion.Crude production is continuing apace, most operators say. It climbed to 1.2mn b/d in June from about 1.1mn b/d in prior months, with the government aiming for 3mn b/d in 2030. Efforts to attract inward investment are also expected to continue as planned, industry sources say, although progress here was already slow as investors await greater certainty about operating in the country. Interim president Delcy Rodriguez says oil regulations she approved this week will help provide "resources for the recovery and reconstruction of our country" after the quake. The regulations are meant to implement reforms passed earlier this year to allow firms other than PdV to operate oil fields. They also simplify taxes and trim the state's share of earnings and production — Caracas' take from crude production projects has fallen to 20-35pc for most projects, down sharply from an earlier standard of 83.33pc — and create more defined royalty tiers. But Rodriguez must first get to grips with a country where many citizens want basic disaster recovery to take priority over oil contracts. Disapproval of the Rodriguez administration rose to 63pc in an AtlasIntel-Bloomberg poll conducted on 26-20 June, following the quakes, up from 59pc a month earlier. And 65pc disapprove of the government's earthquake response, according to the same poll. Pressure release The disaster could buy Rodriguez's regime a temporary reprieve from political pressure or catalyse a democratic transition, according to consultancy Teneo's political analyst Nicholas Watson. Most officials who worked under former president Nicolas Maduro — including some wanted by the US for drug trafficking — remain in place. But the US has said it is prioritising stability before moving to free elections. The US has indicated it will reinforce the status quo. This includes not opening a path for opposition leader Maria Corina Machado to visit Venezuela after the disaster, although President Donald Trump later indicated this could change. He has still expressed solidarity with Rodriguez and committed to continue disaster recovery aid, while cutting humanitarian assistance to many other countries. But in any case, investor uncertainty will do more to delay upstream development than earthquake recovery. Both existing and hopeful new producers have lined up to sign initial agreements, but "the push now is to turn those into contracts", one industry source said. Contract models included in the reform are workable if not perfect, industry sources say, but the energy ministry will still have a high level of discretion. Potential newer entrants are also wary about commercialisation of production, which involves selling, for example, lighter crude to PdV and receiving potentially heavier crude or fuel oil as payment in kind. Cash flow also remains a problem. Disbursements of oil revenue that must go via a US Treasury Department fund could be more frequent, some operators say. For now, some Venezuelans' main energy concern is having natural gas supplies for cooking turned back on as pipeline and building inspections continue, if the building was lucky enough to stand. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Map: Primary Venezuelan oil assets
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Key price assessments
Crisis en Venezuela y su impacto en los mercados de crudo
La intervención de Estados Unidos en Venezuela ha generado incertidumbre y gran expectativa en los mercados de crudo tanto a nivel global como regional ¿Cómo han evolucionado los precios desde entonces? ¿Qué escenarios se pueden anticipar en un contexto de tanta volatilidad?
Regístrese ahoraTimeline: Key Venezuela sanctions dates
