According to an internal report shared exclusively with Reuters by the state oil company "Petroleos de Venezuela," more than half of Venezuela's 22 oil tankers are so dilapidated that they need immediate repairs or should be taken out of service. The report from the shipping branch of Venezuela's oil company, titled "Deficiencies and Critical Risks of Petroleos de Venezuela Oil Tankers," states that years of deferred maintenance have caused the overall quality of the fleet to decline to a "level that is not reliable," exposing them to the risk of leakage, sinking, fire, collision, or capsizing. The state oil company Petroleos de Venezuela and its shipping branch did not respond to Reuters' requests for comment on this matter. The documents, dated from January 2022 to March of this year (2023), describe the condition of the company's oil tankers and indicate the costs of renting third-party vessels and the status of shipbuilding contracts with Argentine and Iranian companies. According to an analysis by the commercial division of Venezuela's state oil company, the deterioration of Petroleos de Venezuela's fleet has forced it to use rented tankers for transporting and transferring its oil, which provides a significant portion of Venezuela's foreign currency. Petroleos de Venezuela and the Venezuelan Ministry of Oil did not respond to Reuters' requests for comment on this issue. Venezuela has paid at least $300 million to shipyards in Iran and Argentina for six new ships ordered in 2005. However, according to the documents, only two of them have been delivered so far. Additionally, according to documents and records, Petroleos de Venezuela has paid nearly €157 million (about $173 million) or 63% of a €248 million (about $272 million) contract to the Iranian marine industrial company (Sadra), which is under U.S. sanctions, for four oil tankers. According to these documents, only two of the four ordered ships were delivered to Venezuela after delays in payment, difficulties in obtaining parts, and issues related to insurance and permits. Sadra did not respond to Reuters' request for comment on this matter.
Exclusive Reuters Report: Venezuelan Oil Tankers at Risk of Leakage, Sinking, and Fire
A report reveals that over half of Venezuela's oil tankers are in poor condition, risking leaks and accidents. The state oil company has resorted to renting tankers due to the fleet's deterioration. This situation highlights the challenges facing Venezuela's oil industry, which is crucial for its economy.
👥 Key Players
📰 What Happened
An internal report reveals that over half of Venezuela's oil tankers are in poor condition, posing risks of leaks and accidents. The state oil company has been forced to rent tankers due to the deteriorating fleet.
- More than half of Venezuela's 22 oil tankers are in dilapidated condition.
- Venezuela has paid significant amounts to Iranian and Argentine shipyards for new vessels, with only a fraction delivered.
💡 Why It Matters
📚 Background
Venezuela's oil industry has faced severe challenges due to economic mismanagement and U.S. sanctions, leading to a decline in production and infrastructure.
🏷️ Entities Mentioned
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