Repsol received more crude from Venezuela in July

Spanish integrated firm Repsol received a further shipment of crude from Venezuela's state-owned PdV in July to cover outstanding receivables due from its Cardon IV gas joint venture with Italy's Eni in July.

Five cargoes were sent as payment for the gas supplied to the Venezuelan mainland in the first seven months of this year, and covered 45pc of the outstanding receivables from Cardon IV due over the period, according to Repsol's chief executive Josu Jon Imaz.

Repsol continues to receive a crude cargo a month from PdV related to the Spanish firm's upstream crude assets in the country. The firm took one shipment every month over the first half of 2019 in payment for its stake in the Petroquiriquire heavy crude joint venture, Imaz said. PdV has committed to sending Repsol some 7,000 b/d of crude for its participation in the project, he said.

Repsol received 40,000 b/d of Venezuelan crude in January-May, while sending some 7,400 b/d of gasoline to the country as payment for the volumes received in excess of the amount of crude agreed under the deal, according to data from Spain's state-owned petroleum reserves corporation Cores.

The payment in fuel for excess crude received is a usual practice in crude trading since tankers tend to be fully loaded at the export terminal before departure.

Repsol's dealings with crisis-hit Venezuela are being monitored closely by the US as it attempts to tighten sanctions on President Nicolas Maduro's regime. In May, Repsol paid for the excess crude received in diesel instead of gasoline after liaising with the US government.

Repsol has managed to further reduce its exposure to Venezuela through the crude-for-debt deal and by writing down the value of its assets in the country. Its total exposure to Venezuela fell to $447mn at the end of the first half of this year, from $522mn at the end of 2018.