U.S. Refiners Phillips 66 and Citgo Seek to Buy Crude Directly from Venezuela
U.S. refiners Phillips 66 and Citgo Petroleum are looking to buy heavy crude directly from the Venezuelan state oil company PDVSA starting in April to maximize profits, instead of through traders and U.S. oil giant Chevron, according to sources familiar with the initiative. Reuters In January, traders Trafigura and Vitol obtained the first U.S. licenses to export Venezuelan oil as part of a $2 billion deal between Caracas and Washington. Chevron has authorization to operate there and ship crude since last year.
TL;DR
- Phillips 66 and Citgo Petroleum are exploring direct crude oil purchases from Venezuela's PDVSA, aiming to start in April.
- The companies seek to bypass intermediaries like Chevron and trading firms to maximize profits.
- This move is facilitated by expanded U.S. licenses for Venezuelan oil exports.
- Phillips 66 is seeking regulatory and internal authorization for direct purchases and plans to charter its own tankers.
- Citgo is in talks for direct purchases and wants deliveries to the U.S. Gulf Coast, planning to process Venezuelan crude in the coming months.
- Valero, another major U.S. refiner, also plans to buy directly from PDVSA later this year after assessing Venezuela's loading infrastructure.