London, Jul 10: India's Reliance will load its first cargo of Venezuelan crude in three months this week in exchange for diesel under a swap deal the parties say is permitted under the US sanctions regime on the Latin American country, according to a Reliance source and a shipping document from state oil firm PDVSA.
Washington has exempted some Venezuelan oil trade from sanctions when transactions are in exchange for fuel and food or to repay debts rather than for cash. But that trade slowed as the US tightened restrictions and refiners, shippers and insurers have been steering clear of Venezuela to avoid any risk they may fall foul of sanctions.
Washington aims to deprive Venezuelan socialist President Nicolas Maduro of his main source of revenue with the sanctions, which have driven Venezuelan oil exports to their lowest level since the 1940s.
Reliance gave the US State Department and the Office of Foreign Assets Control (OFAC) notice of the diesel swap and received word back that the policies that allowed the transaction were still in place, the Reliance source told Reuters.
Reliance has previously said that its supplies of fuel to PDVSA in exchange for crude were permitted under sanctions.
An oil tanker named Commodore would load the cargo of crude in Venezuela and ship it to India, the tanker's manager NGM Energy said.
"All details of the transaction and transportation were shared with US authorities, who confirmed that the U.S. policy authorizing such transactions remained in place," NGM Energy said in a statement to Reuters.
"The shipment is made in connection with the humanitarian exchange of oil for diesel fuel."
The Commodore is loading a 1.9-million barrel cargo of crude for Reliance at Venezuela's main oil port of Jose, according to an internal PDVSA cargo schedule seen by Reuters.
The Liberian-flagged Commodore was at the Jose Terminal on Thursday, ship tracking data on Refinitiv Eikon showed.
The US State Department, Treasury's enforcement arm OFAC, and PDVSA did not immediately respond to a request for comment.
Reliance has a swap deal to provide diesel to Venezuela in exchange for fuel but has not received a cargo of crude since April. Sources at Indian refiners told Reuters earlier this year they planned to wind down their purchases of Venezuelan oil to avoid any problems with supply due to sanctions.
Other long-time customers of PDVSA, including Italy's Eni and Spain's Repsol, have continued taking cargoes of Venezuelan crude this year under permission granted by the US Treasury Department to exchange the oil for diesel supply as part of debt repayment deals, according to sources from the companies.
NGM Energy also manages the Voyager I tanker, which the United States removed from its list of sanctioned vessels last week after NGM and the ship's owner Sanibel Shiptrade said they would increase measures to ensure vessels complied with international sanctions.
"Last month, NGM Energy SA adopted a firm policy of not allowing vessels under its commercial management to trade to Venezuela, or to carry Venezuelan petroleum cargoes, absent US government authorization," NGM said.
"NGM continues to stand by that pledge."
Comments
Haj subsidy was used to fleece the Muslim Pilgrims. I am sure the Haj tickets are much cheaper.
dear Hassan, dont bother yourself with airfare calcuations. This Naqwi is a stupid parallysed minister of BJP-RSS group. Though he has tongue but he cant speak his own, he has to be feeded by his superiors and spit the same. who the hell he to decide the number of piligrims to perform Hajj, is KSA is fathers property? he is thinking we Indian Muslims are stupid? i doubt he is a muslim (he is not). for your info, dont calculate airfare and expenses which is bound to occur during this holy deed. Islam has clearly emphasized "Hajj shall be performed for healthy and wealthy slaves" lets Ask Allah to all of us blesssed to reach that holy place and paerform our Hajj in sha Allah. Government subsidy is my foot....
He think he and his party fool people in each and every occations. What ever the quota saudi government provides, that much people will go to Hajj every year depend upon the Quota.
Record number of pilgrims ...without subsidy is a slap on you and Modi government.....
Mr mininster, We dont want Subsidy But please compare the air fare now and during HAj season. If you control on that then people will realise that you had did something positive. Airfare regular price from mumbai to jeddah is around Rs 25000/- But during Ramadan and Hajj seoson its crosses more then Rs 75000/- Differrence is more then what government was giving Susidy. So dont fool the nation. Keep control on Air fare. Jai hind
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