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Venezuela lifts forex controls, cash dries up

  • Spanish Market: Crude oil, Oil products
  • 08/05/19

Foreign oil companies operating in Venezuela could benefit from a new central bank resolution that lifts exchange controls by reducing their local operating costs, financial sector executives say.

Resolution No. 19-05-01 dated 6 May effectively puts the government out of the foreign exchange business after 16 years of controls. Commercial banks and exchange houses had been banned from forex trading since the controls were first enacted in 2003 in a failed effort to stabilize Venezuela's currency and discourage capital flight.

But the central bank, which was [sanctioned by the US government](https://www.argusmedia.com/en/news/1887237-us-imposes-sanctions-on-venezuelas-central-bank

) in April, has not abolished its Dicom currency auction system, leaving the door open to re-intervene in the exchange market at a later date.

The new measure implicitly acknowledges that the central bank has exhausted its liquid hard currency. Total official hard currency reserves as of 6 May were $8.53bn, but only a fraction of this is liquid.

The bank will not supply dollars to the banks and exchange houses, hoping instead that dollars transacted by banks and exchange houses will be supplied by the private sector, mainly foreign oil companies. But up to now, the oil companies have conducted all currency transactions offshore, and there is no sign that they would do any differently through private banking channels. As a result, the new measure is unlikely to lead to a meaningful increase in the supply of dollars entering Venezuela's depleted financial system.

The resolution also tacitly recognizes the primacy of the black market over 11 different government currency control mechanisms created and abandoned since 2003. In recent years, the official controlled rate has creeped up to the parallel rate anyway. According to the latest exchange rate data, the Dicom rate is 5,200 bolivars per dollar, while the black market rate is Bs5,886/USD.

The effective depreciation of the currency could benefit Russian state-controlled Rosneft, Chinese state-owned CNPC and western companies Chevron, Repsol, Eni, Total, Equinor and Shell by reducing the costs of labor, supplies and services in Venezuela. Companies consulted by Argus declined to comment.

But state-owned oil company PdV, whose exports provide almost all government revenue, probably will not be allowed to make unrestricted foreign currency transactions through the private-sector channels. The company is also subject to US sanctions.

Details about how the new private-sector system will work remain sketchy. The mechanism effectively floats the exchange rate, with buy/sell prices negotiated individually by banks and exchange houses and their corporate clients.

A daily referential exchange rate would be posted by the central bank, consisting of the average price of all individual currency transactions reported each day to the bank by the commercial banks and exchange houses.

The de facto end of government exchange controls would make all imports more expensive in local currency. Venezuela's economy is heavily dependent on imports as two decades of state controls and nationalizations have wiped out local suppliers.

Local currency traders said the foreign currency trading desks could benefit larger oil and non-oil companies in need of US dollars and euros to pay for imports, repatriate locally generated profits and honor overseas debts.


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18/03/25

State of emergency after Nigeria pipeline attack:Update

State of emergency after Nigeria pipeline attack:Update

Updates with state of emergency declared London, 18 March (Argus) — The Nigerian government has declared a state of emergency in Rivers State, after an apparent attack on the Trans-Niger Pipeline (TNP) halted crude movements to Nigeria's Bonny Light export terminal. A fire occurred on the pipeline at the border of the Kpor and Bodo communities, and the pipeline's management has shut down the affected section, the Rivers State police said. Operator Renaissance Africa said it is responding to an incident. The 180,000 b/d, 60km TNP carries crude to the Bonny terminal, from where the Bonny Light grade is exported. TNP was operated until 14 March by Shell subsidiary SPDC . The pipeline has been the target of repeated oil theft, vandalism and sabotage in the past, and Shell shut the TNP entirely between April and October 2022. Nigerian President Bola Tinubu today said the resumption of "disturbing incidents" had happened "without the [state] governor taking any action to curtail them". Tinubu suspended the Rivers State governor and his deputy and said the region will be under federal control, effective immediately. It is unclear what if any effect this will have on the region's oil production, a source within state-owned oil firm NNPC told Argus . But it appears the pipeline attack has halted loadings at the Bonny terminal. The Almi Voyager was the most recent tanker to load there, with around 550,000 bl of crude on 14 March. Loading operations are seemingly halted as the pumping of 475,000 bl to NNPC's 210,000 b/d Port Harcourt refinery was the next scheduled operation before the explosion. Market sources said they are monitoring the situation and awaiting a possible declaration of force majeure by Renaissance Africa. Sources added that loading operations at the export terminal were already running up to two weeks behind schedule. By Elena Mataro, Adebiyi Olusolape and Sanjana Shivdas Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Norway's Equinor sells first Johan Castberg crude cargo


18/03/25
18/03/25

Norway's Equinor sells first Johan Castberg crude cargo

London, 18 March (Argus) — Norway's state-controlled Equinor has sold its first cargo of crude from the new Johan Castberg field in the Barents Sea to Spanish firm Repsol ahead of first oil next month, according to market sources. Repsol will probably run the crude at its 220,000 b/d Bilbao refinery, the sources said. The Johan Castberg field had been expected to come on stream in the final quarter of 2024, but start-up was delayed, first to January-February this year because of bad weather, and more recently to April. Equinor delayed the first loading of Johan Castberg crude to 14-17 April from 21-24 February. The April export programme comprises four 700,000 bl cargoes, with Equinor loading three and Johan Castberg partner Var Energi loading the fourth. Three of the April cargoes are unsold, and Equinor is planning to issue separate tenders for them. It is not immediately clear what price the first cargo fetched. Traders have said previously that the grade could be priced at a premium to sweet middle distillate-rich Norwegian grades such as Troll or Alvheim. Johan Castberg crude will also be rich in middle distillates and have have a gravity of 34.7°API with a sulphur content of just 0.16pc when the field starts production, according to an assay. The field is expected to produce 220,000 b/d at plateau and has estimated recoverable reserves of 450mn-650mn bl. Equinor operates Johan Castberg with a 50pc stake, Var Energi has 30pc and Norwegian state-owned Petoro has 20pc. By Lina Bulyk and Sanjana Shivdas Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trans-Niger Pipeline fire halts crude to Bonny terminal


18/03/25
18/03/25

Trans-Niger Pipeline fire halts crude to Bonny terminal

London, 18 March (Argus) — A fire on the Trans-Niger Pipeline (TNP) appears to have halted crude movements to Nigeria's Bonny Light export terminal. The Rivers State police said a fire occurred on the pipeline at the border of Kpor and Bodo communities. It said the pipeline's management shut down the affected section. Operator Renaissance Africa said it is responding to an incident. The 180,000 b/d, 60km TNP carries crude to the Bonny terminal, from where the Bonny Light grade is exported. TNP was operated until 14 March by Shell subsidiary SPDC . The pipeline has been the target of repeated oil theft, vandalism and sabotage in the past, and Shell shut the TNP entirely between April and October 2022. A source within state-owned NNPC told Argus the Almi Voyager was the most recent crude tanker to load at the Bonny terminal, with around 550,000 bl of crude on 14 March. Loading operations are seemingly halted as the pumping of 475,000 bl to NNPC's 210,000 b/d Port Harcourt refinery was the next scheduled operation before the explosion. Market sources said they are monitoring the situation and awaiting a possible declaration of force majeure by Renaissance Africa. Sources added loading operations at the export terminal were already running up to two weeks behind schedule. By Elena Mataro, Adebiyi Olusolape and Sanjana Shivdas Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

India's base oil imports rise in 2024


18/03/25
18/03/25

India's base oil imports rise in 2024

Singapore, 18 March (Argus) — India's base oil imports rose by 15pc on the year to 2.71mn t in 2024, data from GTT show. Lower domestic production, because of plant maintenance, and higher finished lubricant consumption boosted imports in 2024. Consumption of lubricant and grease increased by 8pc on the year to 4.44mn t in 2024, oil ministry data show. India's base oil imports fell by 19pc on the year to 201,734t in December 2024. Lower-than-expected demand at the end of the year, owing to slowing economic growth in India, likely caused the decline. Base oil imports in December were largely stable as compared with the previous month. South Korea remains the top supplier to India, with imports exceeding 1.15mn t in 2024, a 27pc increase from the previous year. But imports from South Korea dropped by 28pc on the year to 82,989t in December because of reduced supply, with a key refiner having maintenance in the fourth quarter of 2024. Imports from Singapore and Taiwan increased by 25pc and 28pc respectively in 2024. Asian suppliers are diverting supply to other markets with falling demand from China. The Mideast Gulf remains a key supply region, supplying close to a quarter of India's imports in 2024. Saudi Arabia and the UAE are among top suppliers. By Chng Li Li India base oils imports unit Dec'24 m-o-m ± % y-o-y ± % Jan-Dec 24 y-o-y ± % South Korea 82,989 -9.7 -27.5 1,150,234 27.1 Singapore 41,656 129.7 69.4 399,599 25.1 Saudi Arabia 25,738 18.7 20.1 251,387 -9.0 UAE 17,198 -38.2 -30.3 266,178 18.1 Taiwan 14,221 9.4 213.7 115,877 28.0 Monthly total 201,734 -0.4 -18.8 2,713,623 14.6 Source: GTT Total includes all countries, not just those listed Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump set to meet with oil, gas executives


17/03/25
17/03/25

Trump set to meet with oil, gas executives

Washington, 17 March (Argus) — President Donald Trump is scheduled to meet this week with US oil and gas executives to discuss policies that would help achieve "energy dominance", according to an industry group participating in the meeting. Trump and his team are scheduled to meet on Wednesday with executives that serve on the leadership committee of the American Petroleum Institute (API) and staff from the influential industry group, API said. Trump has enjoyed close ties with many oil executives, who have supported his regulatory initiatives and tax cuts, even as his tariff policies have raised concerns among some industry officials. "We appreciate the opportunity to discuss how American oil and natural gas are driving economic growth, strengthening our national security and supporting consumers with the President and his team," API said. The White House did not respond to a request for comment. The upcoming meeting is set to broadly focus on how to achieve Trump's goal for "energy dominance". API last year released a detailed policy roadmap, with plans to scrap regulations that would require more electric vehicles, restart licensing of US LNG export facilities, expand offshore oil and gas leasing, repeal a new $900/t fee on methane leaks, expedite permitting and e retain corporate tax cuts from 2017. The Trump administration has already accomplished some of those policies, and is starting work on others. The White House sees cutting energy prices through deregulation and expanded leasing as part of its strategy to ease inflation. Trump last week said he was "very happy" with oil prices at $65/bl, while US treasury secretary Scott Bessent has set a target of $50/bl. But producers would have to crimp production in the Permian basin at that price, former Pioneer Natural Resources chief executive Scott Sheffield said last week. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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