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PdV names new shipping head as arrests mount

  • Market: Crude oil, Oil products
  • 09/03/20

Venezuelan state-owned PdV named a new head of its shipping unit following 38 arrests over alleged fuel theft.

PdV Marina's new president is Cesar Vladimir Romero Salazar, a navy captain who also heads the national aquatics institute INEA.

The arrests were the latest manifestation of a purge spearheaded by industries minister Tareck El Aissami, who chairs a new presidential commission tasked with overhauling PdV.

PdV has been hammered by US sanctions for over a year, and today's oil price crash will only aggravate the company's troubles.

Former PdV Marina president Oswaldo Vargas, widely known as "the Scorpion", was detained in Caracas on 6 March by agents of the defense ministry's military intelligence agency (Dgcim).

Vargas is charged with leading a systematic smuggling operation that employed PdV tankers to steal fuel from terminals near the Amuay and Cardon refineries on the Paraguana peninsula.

Interior and justice minister Nelson Reverol said the arrests include 30 officers and crew of the PdV-owned products tanker Negra Hipolita flagged in Venezuela.

"This is not simply an act of diverting fuel, it is also an act of treason," Reverol said on state-owned VTV television.

Government intelligence officials used information provided by oil union leaders to track the Venezuelan-flagged tanker after it departed from anchorage near the Amuay refinery on 5 March transporting 126,000 bl of gasoline for delivery to the Venezuelan port of La Guaira.

Union officials have long complained that corrupt PdV officials were using company tankers to skim fuel during cabotage operations.

During the short voyage from Amuay to La Guaira, the tanker switched off its transponder and transshipped some of its cargo to a smaller Colombian-flagged tanker, Reverol said.

This is not the first time the Negra Hipolita has drawn attention. PdV used the tanker to ship diesel to Syria in 2011-12, when US and EU sanctions against Damascus kept most suppliers away. Last year, the tanker was among around 15 PdV vessels that came under Venezuelan army control. But the vessel is not among the tankers that have been targeted by US sanctions in recent months.

More arrests are possible as Dgcim investigates alleged theft at PdV's Bajo Grande terminal on Lake Maracaibo, the El Palito refinery terminal in Carabobo state, and the Jose and Guanta terminals in Anzoategui state, an interior ministry official said.

The arrests followed the detention of the head of PdV's lubricants unit, and two oil traders accused of spying for the US.


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17/04/25

India's ONGC wins 15 blocks in upstream oil, gas bid

India's ONGC wins 15 blocks in upstream oil, gas bid

Mumbai, 17 April (Argus) — Indian state-controlled upstream firm ONGC has won 15 of the 28 blocks offered for bidding in the ninth round under the Hydrocarbon Exploration and Licensing Policy's (HELP's) Open Acreage Licensing Policy (OALP). Three of these were with ONGC's joint venture with state-run Oil India, while another was in a consortium with BP and private-sector refiner Reliance Industries (RIL). This is the first time BP, RIL and ONGC have partnered and won a shallow-water block in the Saurashtra basin. ONGC has a 40pc stake in the consortium, with RIL and BP having 30pc each, a trading source said. RIL-BP had jointly won an ultra-deepwater block in the Krishna Godavari basin in the eighth round. Private-sector Vedanta, which had bid for all 28 oil and gas blocks, won seven blocks. Oil India won six blocks on its own and three in collaboration with ONGC. Private-sector firm Sun Petrochemicals, which had bid for seven blocks in this ninth round, did not secure any blocks. Interest from the private sector was relatively higher in this bidding round, but it remains mostly dominated by state-controlled firms. Foreign participation in the Indian exploration sector remains low. The ninth round saw 28 blocks auctioned(https://direct.argusmedia.com/newsandanalysis/article/2524414) across an area of 136,596.45 km². India has awarded 144 exploration and production blocks comprising a total area of 242,055 km² in eight previous rounds. India in March passed the Oilfields (Regulation and Development) Amendment Bill 2024 , which aims to simplify regulations, attract investment, and enhance exploration and production capabilities. It also allows granting oil leases on stable terms, along with sharing of production facilities and infrastructure. It also scrapped the windfall tax on domestic crude oil production in December 2024. The ministry said it is working on new frameworks to address challenges related to the upstream sector. India imports around 89pc of its crude requirements, despite efforts to reduce its dependency on imports. Crude imports in January-February rose by over 1pc on the year to 5.01mn b/d, oil ministry data show. During the same period, its total crude production fell by over 1pc from a year earlier to 539,000 b/d. By Roshni Devi India OALP blocks ninth bidding round Basin Type Block Area (km²) Awardee Cauvery Basin Ultra-deepwater CY-UDWHP-2022/1 9,514.63 ONGC Cauvery Basin Ultra-deepwater CY-UDWHP-2022/2 9,844.72 ONGC Cauvery Basin Ultra-deepwater CY-UDWHP-2022/3 7,795.45 ONGC Cauvery Basin Ultra-deepwater CY-UDWHP-2023/1 5,330.49 ONGC Saurashtra Basin Shallow water GS-OSHP-2022/1 5,585.61 ONGC Saurashtra Basin Shallow water GS-OSHP-2022/2 5,453.96 ONGC - BPXA – RIL Saurashtra Basin Onland GS-ONHP-2023/1 2,939.56 Vedanta Saurashtra Basin Shallow water GS-OSHP-2023/1 ,5408.79 ONGC Saurashtra Basin Ultra-deepwater GS-UDWHP-2023/1 7,699.00 ONGC Saurashtra Basin Ultra-deepwater GS-UDWHP-2023/2 8,446.28 ONGC Saurashtra Basin Onland GS-ONHP-2023/2 2,977.28 Vedanta Saurashtra Basin Onland GS-ONHP-2023/3 2,793.08 Vedanta Cambay Basin Onland CB-ONHP-2022/2 7,13.92 ONGC- OIL Cambay Basin Shallow water CB-OSHP-2023/1 1,873.66 Vedanta Cambay Basin Onland CB-ONHP-2023/1 446 OIL Cambay Basin Onland CB-ONHP-2023/2 636 Vedanta Cambay Basin Onland CB-ONHP-2023/3 416 ONGC Cambay Basin Shallow water CB-OSHP-2023/2 477 Vedanta Mahanadi Basin Ultra-deepwater MN-UDWHP-2023/1 9,466.85 ONGC - OIL Mahanadi Basin Ultra-deepwater MN-UDWHP-2023/2 9,425.84 OIL Mahanadi Basin Ultra-deepwater MN-UDWHP-2023/3 9,831.48 OIL Krishna-Godavari Basin Ultra-deepwater KG-UDWHP-2023/1 9,495.16 OIL Krishna-Godavari Basin Ultra-deepwater KG-UDWHP-2023/2 9,223.22 OIL Mumbai Offshore Shallow water MB-OSHP-2023/1 2,935.19 ONGC Mumbai Offshore Shallow water MB-OSHP-2023/2 1,749.74 Vedanta Assam Shelf Basin Onland AS-ONHP-2022/2 784 ONGC - OIL Assam Shelf Basin Onland AS-ONHP-2022/3 2,168.09 OIL Kutch Basin Shallow water GK-OSHP_x0002_2023/1 3,164.61 ONGC Source: Oil ministry Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Saudi petchem expansion plans to cap naphtha exports


17/04/25
News
17/04/25

Saudi petchem expansion plans to cap naphtha exports

Dubai, 17 April (Argus) — Saudi Arabia's plans to integrate downstream petrochemical units with its oil refineries could weigh on naphtha exports and gasoline blending. State-controlled Aramco recently signed a deal with Chinese state-controlled Sinopec to build and integrate a 1.8mn t/yr mix-feed ethylene steam cracker and a 1.5mn t/yr aromatics complex into the 400,000 b/d Yasref refinery. This sort of integration would typically redirect naphtha to the petrochemical units and away from the gasoline blending pool, traders said. Market participants point to a likely fall in overall Saudi naphtha exports, as has been the case since the integration of petrochemical operations at the 400,000 b/d Jizan and PetroRabigh refineries in 2021 and 2008, respectively. Joint Organisations Data Initiative (Jodi) data show Saudi naphtha exports in steady decline to 93,000 b/d in 2024, 108,700 b/d in 2023, 144,800 b/d in 2022 and 169,200 b/d in 2021. Data from Kpler show naphtha exports from the Yasref refinery at 22,000 b/d in 2024, down from 25,000 b/d a year earlier but higher than 19,000 b/d in 2022. The majority of these exports went to Indonesia, Malaysia and South Korea. Yasref has the capacity to produce 112,000 b/d gasoline but it exported only 17,000 b/d in 2024 and 26,000 b/d in 2023. Market participants said the integration may not have any immediate significant effect on gasoline output but the addition of the aromatic complex, in theory, could need pull in more heavy full-range naphtha that is otherwise used as a blendstock for gasoline production. It remains to be seen if the new mixed feed cracker would favour naphtha or LPG as a feedstock. Ethane accounts for the majority of feedstock for Saudi crackers. The shift of focus from producing transportation fuels to petrochemicals comes as Saudi gasoline demand continues to lag pre-pandemic levels and faces pressure from growing uptake of electric vehicles. Saudi gasoline demand averaged 514,000 b/d in 2024, well below the 550,000 b/d in pre-pandemic 2019, mainly because of higher retail prices . Aramco has a target to process up to 4mn b/d of crude into petrochemicals by 2030, from 1mn b/d currently. It is developing an $11bn petrochemical expansion project at the 460,000 b/d Satorp refinery joint venture with TotalEnergies. By Rithika Krishna Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Valero Benicia refinery closure latest Calif challenge


16/04/25
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16/04/25

Valero Benicia refinery closure latest Calif challenge

Adds details on refinery operations, California regulations. Houston, 16 April (Argus) — US refiner Valero is planning to shut or re-purpose its 145,000 b/d refinery in Benicia, California, compounding the state's fuel market challenges. The company submitted a notice to the California Energy Commission (CEC) today of its intent "to idle, restructure, or cease refining operations" at the refinery by the end of April 2026. Valero also said it continues to evaluate strategic alternatives for its remaining operations in the state, namely its 85,000 b/d Wilmington refinery. Valero said previously west coast refinery closures were likely , citing the high cost of doing business in the state given its environmental and financial regulations. California refiners in recent years have faced what the industry views as a restrictive environment for processing crude. Phillips 66 last year said it would shut its 139,000 b/d Los Angeles refinery, saying that the long-term sustainability of the refinery was uncertain and affected by market dynamics. The Phillips 66 refinery will be shut by October. Growing legislative barriers California governor Gavin Newsom last year signed two laws, SB X1-2 and AB X2-1, which added regulations in an effort to reduce retail gasoline price volatility. The measures authorized the CEC to develop and impose requirements for in-state refiners to maintain minimum stocks of gasoline and gasoline blending components. They also authorized the CEC to determine an acceptable refining margin in the state and penalize companies that exceed it. The agency is currently in the rulemaking process on some of the measures including a requirement for refiners to submit "resupply plans" 120 days before planned maintenance that must be approved by the state. Non-compliance could carry a civil penalty of $100,000-$1mn per day. Separately, the city of Benicia recently approved a safety ordinance that applies to industrial facilities that handle hazardous materials including the Valero refinery. The ordinance included new air quality monitoring programs. California air regulators in October 2024 levied an $82mn fine against Valero for emissions violations at the Benicia refinery. The Bay Area Air Quality Management District and California Air Resources Board announced the penalty for "egregious emissions violations" stemming from a 2019 inspection that discovered unreported emissions coming from the refinery's hydrogen system. Since the 1980s, 29 refineries in California have been shut or integrated with other refineries that eventually closed or converted to renewable fuels production, according to CEC data. About half of the shut refineries were smaller operations, producing less than 20,000 b/d. Chevron, the US oil major that has long complained about a hostile regulatory environment in its home state of California, is relocating its headquarters to Houston. Valero said this week it recorded a pre-tax impairment charge of $1.1bn for the Benicia and Wilmington refineries in the first quarter as it evaluates strategic alternatives. The impairment will be treated as a special item and excluded from first quarter earnings, Valero said. The Benicia refinery produces jet fuel, gasoline, diesel, and asphalt and has more than 400 employees. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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FincoEnergies joins FuelEU compliance market


16/04/25
News
16/04/25

FincoEnergies joins FuelEU compliance market

London, 16 April (Argus) — Netherlands-based fuel supplier FincoEnergies has launched a pooling service to help shipowners comply with FuelEU Maritime requirements. The service will enable undercompliant ships to meet their FuelEU requirements by pooling them with vessels that run on marine biodiesel supplied by FincoEnergies' own GoodFuels brand. The pooling service is also based on a partnership with maritime classification organisation Lloyd's Register, the company said. FincoEnergies said it will take the role of "pool organiser". The FuelEU Maritime regulation, which came into effect this year, sets greenhouse gas (GHG) emissions reduction targets of 2pc for vessels travelling in or out of Europe. The reduction jumps to 6pc from 2030 and gradually reaches 80pc by 2050. The pooling mechanism built into FuelEU Maritime allows shipowners to combine vessels to achieve overall compliance across the pool, enabling a system by which compliance can be traded. Argus assessed the values of FuelEU Ucome-MGO abatement and Ucome-VLSFO abatement, prices which can be used as a metric to value compliance, at an average of $302.56/t of CO2 equivalent (CO2e) and $337.46/tCO2e, respectively, so far this year. By Hussein Al-Khalisy and Natália Coelho Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Iran says uranium enrichment 'not up for negotiation'


16/04/25
News
16/04/25

Iran says uranium enrichment 'not up for negotiation'

Dubai, 16 April (Argus) — Iran's foreign minister Abbas Araqchi said uranium enrichment is non-negotiable after US special envoy to the Middle East Steve Witkoff suggested any new nuclear deal would require a halt. "We are open to acknowledging and answering concerns [about our nuclear programme] in order to help build trust," Araqchi told reporters in Tehran. "But the core issue of Iran enriching uranium is not up for negotiation." Araqchi was responding to questions about a social media post made by Witkoff on 15 April in which he suggested that any new nuclear deal would require Iran to "stop and eliminate" its enrichment of uranium. In a television interview the day before, Witkoff indicated that Washington just wanted Iran to abide by the 3.67pc enrichment threshold that was agreed in the previous nuclear deal that US president Donald Trump pulled out of in 2018. Witkoff's apparent shift in stance was echoed by White House press secretary Karoline Leavitt on 15 April, who said: "The president does not want to see Iran have a nuclear programme. He does not want Iran to obtain a nuclear weapon." Araqchi, who is leading the Iranian delegation in the talks, said such "contradictory" comments by US officials are "not helpful". Aracqhi and Witkoff are due to meet on 19 April for a second round of talks, which were initially scheduled to be held in Oman but and now due to take place in Rome, according to Iran's state broadcaster IRIB. Both Tehran and Washington described the first round of talks in Oman on 12 April as "positive and constructive." By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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