Oil-producing and refining firms from the U.S., and other countries, are gaining market shares in Venezuelan crude oil as they sign direct deals with PDVSA. This puts them in competition with global traders who signed 'earlier contracts' with the interim government of President Delcy Rodriguez. Vitol, Trafigura and other trading houses control the majority of Venezuela's oil exports. These agreements were signed with Caracas in January under Washington's supervision. They are able to take 100 million barrels to resell to final buyers within six months.

PDVSA is gradually returning to its business model before the U.S. imposed energy sanctions on the OPEC member in 2019. This business model prioritizes supply agreements with joint-venture partners, refineries, and other direct suppliers over intermediaries.

Sources involved in negotiations claim that the model could help PDVSA secure better prices in long-term sales deals.

After a seven-year pause, Phillips 66 began purchasing spot cargoes in 'May from PDVSA. Shipping documents show that in July, three cargoes were allocated to the company for delivery at the main oil port of the country, Jose.

According to documents, India's Reliance Industries began purchasing crude oil directly from PDVSA as early as May. These barrels will now be added to cargoes purchased from Vitol Trafigura, and Chevron in order to ensure sufficient volumes to meet the demand.

Sources said that Valero Energy, Thailand's Tipco asphalt and other companies are expected to start direct purchases within the next few months. Documents show that as of mid-July they still had not yet been assigned loading window numbers.

The four companies were under crude supply contracts with PDVSA up until early 2019 when U.S. sanctioned cut Venezuela's oil imports to the U.S.A., Europe and certain Asian countries. A company source stated that the state company wants them to return to their pool of customers in order to diversify destinations, prices and secure long-term contracts to allocate heavy grades which can otherwise be difficult to market.

PDVSA, Venezuelan oil ministry, Chevron Phillips 66 Valero and Reliance all declined to comment on requests. Tipco stated that the company had not yet completed any purchases. In May, the U.S. Energy Department reported that Venezuelan oil sales totaled $2 billion to 3 billion dollars per month. About half of this volume was bound for the U.S. The Energy Department has listed TotalEnergies units, Aramco and Chevron as well as Citgo Petroleum, Exxon Mobil Marathon?Petroleum Exxon Mobil, Citgo Petroleum Exxon Mobil, Phillips 66 Trafigura Valero Vitol, PBF Energy in its list of importers to the U.S. for this year.

PARTNERS EXPANDING As Venezuela exports over 1.2m barrels of oil per day (bpd), an increase of an average of 847k bpd in 2025, PDVSA’s biggest partners are expanding their intakes of Venezuelan oil.

Chevron?in the second-quarter exported?about 293,000 bpd?of Venezuelan crude?to its refineries?and others?, an increase of 223,000 bpd?from the previous quarter?and a step in its goal to expand output and exports?in Venezuela?

Documents show that Spain's Repsol started loading Merey 16 crude directly at Jose in July, after purchasing from traders the previous months. Meanwhile, Italy's Eni was also allocated a "cargo" bound for Europe in this year. Sources said that the oil was being used to pay off pending debts owed by companies. This year, Chevron and Eni announced?expansions of oil and gas projects in Venezuela. Exports from joint ventures will?increase, putting pressure on trading firms. On their part, the 'global traders' are also looking to expand business in Venezuela. Trafigura already has a team in Caracas and Vitol will be hiring about 12 people.

Venezuela's crude production is expected to increase to 1,37 million barrels per day (bpd) by the end of the year from its current 1.2million bpd. This will allow for increased supplies and competition.

(source: Reuters)