Oil major Chevron imported more than 100,000 b/d of Venezuelan crude in April, accounting for almost all of the sanctioned Opec member's deliveries to the US.
The company received 104,000 b/d of Venezuelan crude at its 340,000 b/d refinery in Pascagoula, Mississippi, up from about 31,000 b/d of crude the previous month and significantly higher than the 9,467 b/d reported in the same month of 2018. Citgo, US refining subsidiary of Venezuelan national oil firm PdV, imported about 10,000 b/d in April for its 425,000 b/d refinery in Lake Charles, Louisiana.
Chevron continues to operate joint venture oil production in Venezuela. The company could not be immediately reached for comment regarding its arrangements with the US government for continued Venezuelan imports. The roughly 114,000 b/d of US imports in April represented about 14pc of Venezuela's production for the month, based on Argus estimates.
The US imposed sanctions on PdV in late January as it ramped up pressure to force President Nicolas Maduro to step aside for new elections under a transition government headed by National Assembly leader Juan Guaido. Maduro has resisted that pressure, including an aborted attempt to spark a military uprising at the end of April.
But the sanctions have forced a change in US heavy crude supplies. Venezuela sent 561,000 b/d of crude to the US in April 2018 — all of it delivered to the US Gulf coast. US heavy crude refiners have scrambled to find alternatives. Imports of Colombian heavy crude rose to 351,000 b/d in April, more than double the volume imported the same month of 2018. Heavy Mexican crude imports increased by 20pc over the same period, to 652,000 b/d.
Chevron meanwhile faces a 27 July deadline to wind down operations in Venezuela. The company says it continues to comply with all laws and regulations. Venezuelan oil ministry officials tell Argus that they expect Chevron to receive an extension for operations.
