ConocoPhillips in Discussion to Import Venezuelan Crude to US

ConocoPhillips is open to selling Venezuelan oil in the US as a way to recovering close to $10 billion it is owed by the country according to WSJ reports. It abandoned its operations there when its assets were nationalized on 2007.

• CononcoPhillips is in preliminary discussions with national oil company Petróleos de Venezuela SA to do so.
• The move would further open up Venezuela’s ability to send its oil into the US market after Chevron was recently allowed to start importing cargoes from the country, also to clear outstanding debts.
• Unlike Chevron, ConocoPhillips is not understood to be looking to start operations again in the country and is only thought to be trying to clear the debt.
• The US was Venezuela’s largest oil market prior to sanctions in 2019.
• At least a handful of oil-and-gas companies are exploring Venezuelan deals and holding talks with PdVSA, some of which are seeking authorization from the U.S. State and Treasury departments in order to negotiate.
• An easing of Venezuelan oil sanctions comes shortly after Russian flows have been curtailed, in a move that could make the transition without those barrels much smoother for US refiners.