Repsol https://www.reuters.com/business/energy/repsol-profit-quadruples-soaring-oil-prices-2022-07-28 resumed imports of Venezuelan crude this month after an enforced two-year pause by Washington’s sanctions on President Nicolas Maduro’s government as the US State Department granted clearances to European companies in the OPEC nation https://www.reuters.com/business/energy/opec -weigh-holding-oil-output-steady-or-small-hike-sources-say-2022-07-28.
Since June, Eni has received a total of 3.6 million barrels of Venezuelan crude from the state oil company PDVSA https://www.reuters.com/business/energy/resumption-deliveries-europe-boosts-venezuela-oil- exports-data-2022-07-05, settling part of the Italian firm’s outstanding debt, according to PDVSA documents and oil tanker tracking data.
Most of the crudes were then delivered by Eni Repsol, which has greater capacity for refining heavy sour crudes.
“It seems to me that we are entering a new dynamic regarding Venezuela,” said Josu Jon Imaz, CEO of Repsol, during the presentation of the company’s second quarter results.
“The return of shipments from Venezuela is good news for our refining (activity) because the quality of these crudes perfectly matches the great complexity of our system,” he added.
The Spanish company has so far received nearly 3 million barrels of Venezuelan oil, the manager said, without specifying the size of the import volumes.
Venezuelan heavy crude will help Repsol power the most complex units of its refineries, thus providing better profitability for the facilities.
“We will have more capacity to fill our cokers, probably more efficiently optimizing the conversion units we have,” Imaz said.
Repsol has reduced its use of gas at its refineries by one billion cubic meters (bcm) – a key element in converting crude into fuel – and has been looking for alternatives as Europe tries to reduce demand in the event of new supply disruptions from Russia, the company also said during its earnings report.