PDVSA tells crude buyers it cannot meet full supply commitments

05.06.2018 kl 11:25 872

Caracas, Venezuela (Platts)--4 Jun 2018 440 pm EDT/2040 GMT

Venezuela's PDVSA has notified eight international customers it will not be able to meet its full crude supply commitments in June, a PDVSA official told S&P Global Platts Monday.

The source, who spoke on the condition of anonymity, said PDVSA is contractually obligated to supply 1.495 million b/d to those customers in June, but only has 694,000 b/d available for export.

"Among the affected clients due to the low availability of crude to export are Nynas, Tipco, Chevron, CNPC, Reliance, Conoco, Valero, and Lukoil, which will partially receive the volumes established by the contracts," the source said.

Most of the affected crude is Venezuela's Merey 16 grade, a mix of light crude and extra-heavy crude from the Orinoco Belt.

"[PDVSA is] committed to supply contracts with a volume of 1.271 million b/d of Merey 16, but will only have 578,000 b/d available," the source said.

Venezuela has seen its oil industry crumble amid mismanagement, corruption and a lack of investment in recent years. Crude production has plummeted by 900,000 b/d over the past two years to 1.41 million b/d in April, according to Platts' most recent OPEC production survey.

The source said US-based Conoco is due to receive 165,000 b/d of Merey 16 this month, but PDVSA will only be able to provide 100,000 b/d.

"If Conoco does not want to [take] that volume, PDVSA will assign it to another client," the source said.

PDVSA is due to provide Russia's Lukoil with 222,000 b/d of diluted crude oil, or DCO, in June, but only has 116,000 b/d available, said the source. --Mery Mogollon, newsdesk@spglobal.com