PdV to transfer crude out of listing storage unit

Venezuelan state-owned PdV is preparing to transfer around 1.15mn bl of crude out of a listing floating storage unit so it can be refloated and repaired, senior oil ministry and PdV officials in Caracas told Argus.

The Venezuela-flagged Nabarima, a small double-hull VLCC built in 2005, has been moored at the Corocoro field in the Paria Gulf where it is used to store crude from PdV's PetroSucre joint venture with Italy's Eni.

PdV has gained "experience with ship-to-ship operations since US sanctions were imposed last year and we are confident we can pump the crude out of the Nabarima without spilling any of the oil into the sea," a company official in Caracas said.

PetroSucre suspended production of about 11,000 b/d of medium-quality Corocoro crude earlier this year because of insufficient storage capacity.

Technicians hired by Eni are currently aboard the Nabarima assessing its problems and what repairs are needed, a PetroSucre official said.

Eni has not commented on the sinking unit, which has raised alarm bells in nearby Trinidad and Tobago.

Argus has learned that equipment suppliers in Port of Spain have been approached by Venezuela to assist in the operation.

One of PdV's contractors that works with the vessel said the transfer requires a dynamic positioning tanker to draw out the oil, an operation that the company understands but is not necessarily capable of conducting safely.

Skeleton crew

A PetroSucre worker now aboard the Nabarima said water levels in the tanker's flooded engine room and nearby compartments rose to almost 10ft (3m) late yesterday before damaged water pumps were repaired and restarted, allowing the water to recede.

At least 12 workers per shift are supposed to crew the Nabarima, but PdV since last year reduced the number of personnel to save money, the worker said.

Only four workers were aboard the unit last week when the flooding was first detected, he said. When the vessel's plight became public over the weekend, PdV increased the personnel aboard to the required minimum of 12.

"We've been complaining about irregularities at PetroSucre for years including lack of maintenance aboard the Nabarima, damaged compressors, faulty electrical systems, insufficient skilled workers and lack of food and potable water, but our written complaints have been ignored by regional PdV managers," a senior oil union official in Sucre state said.

The vessel's boilers are also damaged because PdV has been using fresh instead of demineralized water, causing corrosion, the worker aboard the tanker said.

PdV partially compensated for a deficient electrical system by installing a generator aboard the tanker earlier this year. But when its kitchen is in use other equipment has to be shut down. "It's so bad that we can't use the kitchen and operate cranes at the same time," the worker said.

PdV has not officially commented on the situation.