Spain boosts Venezuelan crude imports

Spain imported around 30,000 b/d of Venezuelan crude last month, up from 20,000 b/d in July, according to Argus estimates. A further pair of cargoes from Venezuela are signalling arrival at Bilbao, where Spanish integrated firm Repsol operates a 240,000 b/d refinery.

Repsol has continued to take Venezuelan crude during a period of unilateral US sanctions on Venezuela. August's shipments were delivered to Bilbao and Repsol's 220,000 refinery at Cartagena. Two 450,000 bl cargoes of Venezuelan crude are signalling arrival at Bilbao on 12 September and 17 September, respectively.

Wary of US oil and financial sanctions on Caracas, Repsol has said its imports of Venezuelan crude are booked as payment from state-owned PdV for its oil and gas production from the PetroQuiriquire and Cardon 4 ventures.

For the Venezuelan government of President Nicolas Maduro, Spain remains a reliable commercial outlet even if no cash is transacted. But the flow of Venezuelan oil to Repsol belies the Spanish government's political stance towards Maduro. Madrid and most other western countries withdrew their recognition of Maduro early this year in favour of National Assembly president Juan Guaido as interim president.

Guaido recently named his mentor Leopoldo Lopez as co-ordinator of a fledgling parallel government, which is mostly comprised of Venezuelan exiles. But since his escape from house arrest and a botched military uprising on 30 April, Lopez remains a "guest" at the Spanish diplomatic residence in Caracas.

After Lopez's appointment to Guaido's shadow government, the Spanish foreign ministry told Argus that "he knows and accepts that his stay in the residence of the ambassador of Spain implies a limit on his political activities". Lopez's father, Leopoldo Lopez Gil, an outspoken exile and Spanish citizen, was recently elected to the European Parliament.