Generic Hero BannerGeneric Hero Banner
Latest Market News

China joins Iran in PdV quest to repair refinery

  • Spanish Market: Crude oil, Oil products
  • 08/05/20

The governments of Iran and China are working closely with Venezuelan state-owned PdV to restart the 940,000 b/d CRP refining complex and replenish nearly exhausted fuel supply.

The refinery repair work is quietly carrying on against the tumultuous backdrop of a foiled coup plot over the weekend, giving President Nicolas Maduro a political edge over his US-backed foes in the opposition.

Iranian state-owned Mahan Air has made 16 direct flights since 22 April from Tehran to Josefa Camejo international airport near the CRP on the Paraguana peninsula, bringing in catalyst, refinery parts and technicians from Iran and China, according to five PdV and oil ministry officials with direct knowledge of the ongoing airlift operation between the Chinese city of Chengdu, Tehran and Paraguana.

Venezuela's INAC commercial air authority has authorized Mahan Air to make up to 20 direct flights from Tehran to Paraguana, but additional flights will be approved "as needed," a senior INAC official tells Argus.

Chinese state-owned CNPC subsidiary Jichai Power Equipment Company in Chengdu is among the Chinese firms shipping compressors, refinery parts and technicians to Paraguana with Mahan Air, an oil ministry official said.

China also is supplying PdV with catalyst because Iran does not produce enough of the substance to fully supply the needs of its own refineries, the ministry official added.

Iranian state-owned engineering company Khatam al-Anbiya, a US-sanctioned entity affiliated with the Islamic Revolutionary Guard Corps (IRGC), is also supplying PdV with refinery parts and technicians, the official added.

Local Chinese diplomatic and CNPC officials declined to comment on the downstream cooperation. Iran's embassy in Caracas did not respond to three telephone requests seeking comment.

US-sanctioned Mahan Air has delivered about 700 tons of Iranian and Chinese catalyst since 22 April, a PdV downstream official at the CRP refining complex said by telephone. Among the delivered parts are compressors and pumps, the oil ministry said.

Mahan Air has set up an "air bridge operation" that extends from Chengdu through Tehran to Paraguana, according to a member of Venezuela's PdV restructuring commission.

"In some instances, cargoes have been transferred from flights arriving in Tehran from Chengdu to flights leaving Tehran immediately for Venezuela," the commission official said. "We're confident we can restart the CRP's gasoline production operations soon with the assistance of our Iranian and Chinese partners."

The flights are returning immediately to Tehran within hours after landing in Paraguana, according to a CRP union official who claims to be in "permanent contact" with workers at the heavily militarized airport.

The cooperation was brokered directly by new acting oil minister Tareck El Aissami, who also heads the restructuring commission, ministry and PdV officials said.

Aissami's commission co-chair, acting PdV chief executive Asdrubal Chavez, also participated in the refinery repair discussions.

The Maduro government is paying Mahan Air and suppliers of catalyst, parts and technical support in Iran and China with gold bullion from the Central Bank of Venezuela.

A Venezuelan central bank official confirmed reports that over nine tons of gold valued at more than $500mn have been shipped from Venezuela to Iran since the airlift started on 22 April.

PdV repair crews supported by Iranian and Chinese technicians currently are focusing efforts on restarting up to 86,000 b/d of gasoline production at the 305,000 b/d Cardon refinery, which together with the 635,000 b/d Amuay refinery comprises the CRP refining complex that PdV has operated as a single integrated facility since 1997.

After Cardon resumes crude processing, the Iranian and Chinese technicians will support PdV's efforts to restart Amuay and the 140,000 b/d El Palito refinery in Carabobo state, the oil ministry said.

Skepticism

The CRP, which accounts for about 72pc of PdV's crippled domestic refining capacity of 1.3mn b/d, was once considered a world-class facility. The complex has a combined 42 crude processing units including 10 distillation towers, nine vacuum distillation units, nine hydrotreaters, two fluidized catalytic crackers, three deep conversion units, three alkylation units, two isomerization units, three MTBE/TAME units, and one catalytic naphtha reformer.

The CRP also has lubricants, asphalt and sulfur production units, plus over 57.3mn bl of combined crude and refined products storage capacity.

"Almost all of the CRP's crude processing units are currently shut down, with a handful at about 10pc of their nominal capacity," a senior oil union official at Cardon said.

Despite the intensive airlift operations, union officials at the CRP remain skeptical that PdV can restore gasoline production in the near term.

"The CRP is engineered to operate as an integrated unit, which means all of its processing units must be operational to assure safe and sustained fuel production," a senior union official said.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

17/04/25

IMF anticipates lower growth from US tariffs

IMF anticipates lower growth from US tariffs

Washington, 17 April (Argus) — Economic growth projections set for release next week will include "notable markdowns" caused by higher US tariffs that have been disrupting trade and stressing financial markets, IMF managing director Kristalina Georgieva said today. The IMF earlier this month warned that the tariffs that President Donald Trump was placing on trading partners could pose a "significant risk" to the global economy. Those higher trade barriers are on track to reduce growth, raise prices for consumers and create incremental costs related to uncertainty, the IMF plans to say in its World Economic Outlook on 22 April. "Our new growth projections will include notable markdowns, but not recession," Georgieva said Thursday in a speech previewing the outlook. "We will also see markups to the inflation forecasts for some countries." Trump has already placed an across-the-board 10pc tariff on most trading partners, with higher tariffs on some goods from Canada and Mexico, a 145pc tariff on China, and an exception for most energy imports. Those tariffs — combined with Trump's on-again, off-again threats to impose far higher tariffs — have been fueling uncertainty for businesses and trading partners. The recent tariff "increases, pauses, escalations and exemption" will likely have significant consequences for the global economy, Georgieva said, resulting in a postponement of investment decisions, ships at sea not knowing where to sail, precautionary savings and more volatile financial markets. Higher tariffs will cause an upfront hit to economic growth, she said, and could cause a shift in trade under which some sectors could be "flooded by cheap imports" while other sectors face shortages. The IMF has yet to release its latest growth projections. But in January, IMF expected global growth would hold steady at 3.3pc this year with lower inflation. The IMF at the time had forecast the US economy would grow by 2.7pc, with 1pc growth in Europe and 4.5pc growth in China. The upcoming markdown in growth projections from the IMF aligns with analyses from many banks and economists. US Federal Reserve chair Jerome Powell on 16 April said the recent increase in tariffs were likely to contribute to "higher inflation and slower growth". Those comments appear to have infuriated Trump, who has wanted Powell to cut interest rates in hopes of stimulating growth in the US. "Powell's termination cannot come fast enough!" Trump wrote today on social media. Powell's term as chair does not end until May 2026. Under a longstanding US Supreme Court case called Humphrey's Executor , Trump does not have the authority to unilaterally fire commissioners at independent agencies such as the Federal Reserve. Trump has already done so at other agencies such as the US Federal Trade Commission, creating a potential avenue to overturn the decision. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

BP defends pivot in face of investor discontent


17/04/25
17/04/25

BP defends pivot in face of investor discontent

London, 17 April (Argus) — BP's chairman Helge Lund took the brunt of a mini-revolt against the strategy pivot that the company announced in late February , as he saw support for his re-election slide at the firm's annual general meeting (AGM) in London today. Lund — who already plans to step down from his role as BP's chair — saw the proportion of votes cast in favour of his re-election drop to 75.7pc, well down on the 95.89pc support he secured at last year's AGM. Prior to this year's meeting, climate activist shareholder group Follow This had said that a vote against Lund was still required to signal concern about BP's governance in the absence of a "say-on-climate" vote following the company's recent strategy revamp which included dropping a 2030 limit on its oil and gas production and investing less on low-carbon assets. Institutional investor Legal and General said last week that it would be voting against the re-election of Lund and that it is "deeply concerned" about the company's strategy change. Commenting on today's vote, Follow This said BP's shareholders had "delivered an unprecedented high level of dissent" that signals deep investor concern about climate and governance. The vote "sends a clear signal" that Lund's successor "needs to be climate and transition competent" and show "resistance to short-term activists", the group added. US activist investor Elliott Investment Management, which has a track record of forcing change at resources companies, has reportedly built a stake of around 5pc in BP . Lund told shareholders at the meeting that BP had carried out "extensive engagement" concerning its strategy change, including sounding out 75pc of its institutional shareholder base, and that a majority did not want a "say-on-climate" vote. He also insisted that the recent strategy shift had been very carefully considered by BP's board and leadership team. These considerations involved a review of a broad range of scenarios including the UN Intergovernmental Panel on Climate Change's and BP's own ambition to be a net-zero company by 2050. Earlier in the meeting, BP chief executive Murray Auchincloss conceded that the company had been "optimistic for a fast [energy] transition but that optimism was misplaced", noting that despite many areas of strength within BP it went "too far too fast" so that "a fundamental reset was needed". Asked by an investor about how BP plans to mitigate the effects of the tariffs on imports to the US imposed by President Donald Trump this month , Auchincloss said the company was "tracking the situation carefully". The steel and aluminium tariffs that have been introduced by Washington should not affect BP's onshore business in the US but there are some impacts on the speciality steels the firm brings into the US for its offshore facilities in the US Gulf of Mexico, he said. Auchincloss received 97.3pc of shareholder votes in favour of his re-election, while finance chief Kate Thomson received 98.7pc support for her re-election. All other directors, apart from Lund, received votes greater than 92.9pc in favour of their re-election. By Jon Mainwaring Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Nabisy sperrt Biokraftstoffproduzenten


17/04/25
17/04/25

Nabisy sperrt Biokraftstoffproduzenten

Hamburg, 17 April (Argus) — Die Bundesanstalt für Landwirtschaft und Ernährung hat am 15. April den Zugang eines Biokraftstoffherstellers zum deutschen Biomasseregister Nabisy gesperrt. Dies führte zu einem Anstieg der Ticketpreise in Deutschland und den Niederlanden sowie der HVO-Preise in der ARA. "Dem Nabisy-Nutzer mit der ID: EU-BM-13-SSt-10022652 wurde der Zugang zur staatlichen Datenbank Nabisy [Nachhaltige - Biomasse - Systeme] gesperrt", teilte die Datenbank in einer E-Mail vom 15. April mit. Weiter hieß es, die Bundesanstalt für Landwirtschaft und Ernährung (BLE) prüfe die von diesem Nutzer in der Nabisy-Datenbank ausgestellten Nachhaltigkeitsnachweise und die daraus resultierenden Teilnachweise. Die BLE teilte Argus mit, dass sie aufgrund von Datenschutzbestimmungen keine weiteren Informationen zu der suspendierten Produktionsanlage bereitstellen kann. Die BLE prüfe derzeit die eingegangenen Beweise. Alle vom suspendierten Produzenten ausgestellten Nachweise bleiben für die Dauer der Untersuchung ungültig. Das bedeutet, dass verpflichtete Parteien keine deutschen Zertifikate zur Reduzierung von Treibhausgasemissionen von ihm einfordern können. Elmar Baumann, Geschäftsführer des Verbands der Deutschen Biokraftstoffindustrie erklärte, dass der Verband das Vorgehen des BLE für das Durchführen einer gründlichen Prüfung zur Klärung des Verdachts als zwingend erforderlich einschätzt. Weiter geht der Verband davon aus, dass "der Behörde klare Anhaltspunkte für gravierende Verstöße vorliegen" müssen. Das Ausmaß der von der Untersuchung betroffenen Biokraftstoffmengen ist unklar. Marktteilnehmer berichteten Argus jedoch, dass der Nabisy-Code des Produzenten auf Nachweisen für HVO aus Abfällen und fortschrittlichen Rohstoffen gefunden wurde. Die Nachricht führte zunächst zu höheren Preisen für deutsche THG-Zertifikate sowie für niederländische Zertifikate für erneuerbare Kraftstoffe (HBE). Verpflichtete Unternehmen befürchteten Lücken in der Erfüllung der Treibhausgasminderungsquote, sollten sie die Nachweise des suspendierten Produzenten verlieren. Die deutschen doppelt anrechenbaren THG-Zertifikate für das Jahr 2025 stiegen am 16. April um 10 €/t CO2eq auf rund 270 €/t CO2eq und blieben zum Ende der Woche weitgehend stabil. Auch die europäischen HVO-Preise stiegen, wenn auch in begrenztem Umfang. Der Fob-ARA-Aufschlag für HVO auf Palmölmühlenabwasser (POME)-Basis stieg um rund 25 $/m³, die Spotpreise für HVO auf Basis von Altspeiseöl (UCO) stiegen im Vergleich zum Ende der letzten Woche um rund 40 $/m³. Im deutschen HVO-Markt lässt sich bisher keine Reaktion erkennen. Von Svea Winter Senden Sie Kommentare und fordern Sie weitere Informationen an feedback@argusmedia.com Copyright © 2025. Argus Media group . Alle Rechte vorbehalten.

Risks rising for possible recession in Mexico: Analysts


17/04/25
17/04/25

Risks rising for possible recession in Mexico: Analysts

Mexico City, 17 April (Argus) — The Mexican finance executive association (IMEF) lowered its 2025 GDP growth forecast for a second consecutive month in its April survey, citing a rising risk of recession on US-Mexico trade tensions. In its April survey, growth expectations for 2025 fell to 0.2pc, down from 0.6pc in March and 1pc in February. Nine of the 43 respondents projected negative growth — up from four in March, citing rising exposure to US tariffs that now affect "roughly half" of Mexico's exports. The group warned that the risk of recession will continue to rise until tariff negotiations are resolved, with the possibility of a US recession compounding the problem. As such, IMEF expects a contraction in the first quarter with high odds of continued negative growth in the second quarter — meeting one common definition of recession as two straight quarters of contraction. Mexico's economy decelerated in the fourth quarter of 2024 to an annualized rate of 0.5pc from 1.7pc the previous quarter, the slowest expansion since the first quarter of 2021, according to statistics agency data. Mexico's statistics agency Inegi will release its first estimate for first quarter GDP growth on April 30. "A recession is now very likely," said IMEF's director of economic studies Victor Herrera. "Some sectors, like construction, are already struggling — and it's just a matter of time before it spreads." The severity of the downturn will depend on how quickly trade tensions ease and whether the US-Mexico-Canada (USMCA) free trade agreement is successfully revised, Herrera added. But the outlook remains uncertain, with mixed signals this week — including a possible pause on auto tariffs and fresh warnings of new tariffs on key food exports like tomatoes. IMEF also trimmed its 2026 GDP forecast to 1.5pc from 1.6pc, citing persistent tariff uncertainty. Its 2025 formal job creation estimate dropped to 220,000 from 280,000 in March. The group slightly lowered its 2025 inflation forecast to 3.8pc from 3.9pc, noting current consumer price index should allow the central bank to continue the current rate cut cycle to lower its target interest rate to 8pc by year-end from 9pc. IMEF expects the peso to end the year at Ps20.90/$1, slightly stronger than the Ps21/$1 forecast in March. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

India's ONGC wins 15 blocks in upstream oil, gas bid


17/04/25
17/04/25

India's ONGC wins 15 blocks in upstream oil, gas bid

Mumbai, 17 April (Argus) — Indian state-controlled upstream firm ONGC has won 15 of the 28 blocks offered for bidding in the ninth round under the Hydrocarbon Exploration and Licensing Policy's (HELP's) Open Acreage Licensing Policy (OALP). Three of these were with ONGC's joint venture with state-run Oil India, while another was in a consortium with BP and private-sector refiner Reliance Industries (RIL). This is the first time BP, RIL and ONGC have partnered and won a shallow-water block in the Saurashtra basin. ONGC has a 40pc stake in the consortium, with RIL and BP having 30pc each, a trading source said. RIL-BP had jointly won an ultra-deepwater block in the Krishna Godavari basin in the eighth round. Private-sector Vedanta, which had bid for all 28 oil and gas blocks, won seven blocks. Oil India won six blocks on its own and three in collaboration with ONGC. Private-sector firm Sun Petrochemicals, which had bid for seven blocks in this ninth round, did not secure any blocks. Interest from the private sector was relatively higher in this bidding round, but it remains mostly dominated by state-controlled firms. Foreign participation in the Indian exploration sector remains low. The ninth round saw 28 blocks auctioned(https://direct.argusmedia.com/newsandanalysis/article/2524414) across an area of 136,596.45 km². India has awarded 144 exploration and production blocks comprising a total area of 242,055 km² in eight previous rounds. India in March passed the Oilfields (Regulation and Development) Amendment Bill 2024 , which aims to simplify regulations, attract investment, and enhance exploration and production capabilities. It also allows granting oil leases on stable terms, along with sharing of production facilities and infrastructure. It also scrapped the windfall tax on domestic crude oil production in December 2024. The ministry said it is working on new frameworks to address challenges related to the upstream sector. India imports around 89pc of its crude requirements, despite efforts to reduce its dependency on imports. Crude imports in January-February rose by over 1pc on the year to 5.01mn b/d, oil ministry data show. During the same period, its total crude production fell by over 1pc from a year earlier to 539,000 b/d. By Roshni Devi India OALP blocks ninth bidding round Basin Type Block Area (km²) Awardee Cauvery Basin Ultra-deepwater CY-UDWHP-2022/1 9,514.63 ONGC Cauvery Basin Ultra-deepwater CY-UDWHP-2022/2 9,844.72 ONGC Cauvery Basin Ultra-deepwater CY-UDWHP-2022/3 7,795.45 ONGC Cauvery Basin Ultra-deepwater CY-UDWHP-2023/1 5,330.49 ONGC Saurashtra Basin Shallow water GS-OSHP-2022/1 5,585.61 ONGC Saurashtra Basin Shallow water GS-OSHP-2022/2 5,453.96 ONGC - BPXA – RIL Saurashtra Basin Onland GS-ONHP-2023/1 2,939.56 Vedanta Saurashtra Basin Shallow water GS-OSHP-2023/1 ,5408.79 ONGC Saurashtra Basin Ultra-deepwater GS-UDWHP-2023/1 7,699.00 ONGC Saurashtra Basin Ultra-deepwater GS-UDWHP-2023/2 8,446.28 ONGC Saurashtra Basin Onland GS-ONHP-2023/2 2,977.28 Vedanta Saurashtra Basin Onland GS-ONHP-2023/3 2,793.08 Vedanta Cambay Basin Onland CB-ONHP-2022/2 7,13.92 ONGC- OIL Cambay Basin Shallow water CB-OSHP-2023/1 1,873.66 Vedanta Cambay Basin Onland CB-ONHP-2023/1 446 OIL Cambay Basin Onland CB-ONHP-2023/2 636 Vedanta Cambay Basin Onland CB-ONHP-2023/3 416 ONGC Cambay Basin Shallow water CB-OSHP-2023/2 477 Vedanta Mahanadi Basin Ultra-deepwater MN-UDWHP-2023/1 9,466.85 ONGC - OIL Mahanadi Basin Ultra-deepwater MN-UDWHP-2023/2 9,425.84 OIL Mahanadi Basin Ultra-deepwater MN-UDWHP-2023/3 9,831.48 OIL Krishna-Godavari Basin Ultra-deepwater KG-UDWHP-2023/1 9,495.16 OIL Krishna-Godavari Basin Ultra-deepwater KG-UDWHP-2023/2 9,223.22 OIL Mumbai Offshore Shallow water MB-OSHP-2023/1 2,935.19 ONGC Mumbai Offshore Shallow water MB-OSHP-2023/2 1,749.74 Vedanta Assam Shelf Basin Onland AS-ONHP-2022/2 784 ONGC - OIL Assam Shelf Basin Onland AS-ONHP-2022/3 2,168.09 OIL Kutch Basin Shallow water GK-OSHP_x0002_2023/1 3,164.61 ONGC Source: Oil ministry Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more