Venezuela turns its focus on oil exports to cash-paying country,India as US sanctions on payment restrictions from January 28.The oil company PDVSA has already begun discussions on the oil-export deal with India.
On February 11,Venezuela’s Oil Minister and the president of state-run oil company PDVSA,Manuel Quevedo, arrrived India to attend the Petrotech conference held at Greater Noida and make further proceedings for export deal.
Before the US sanctions which restrict the financial dealings with the Maduro government, PDVSA shipped over 500,000 bpd to the United States, its largest cash market, followed by India then China, at above and below 300,000 bpd respectively.
Larger oil giants like Reliance is among PDVSA’s main cash-paying customers, while Nayara receives Venezuelan oil from one of its largest stakeholders, Russian oil-giant Rosneft.
Even though,Indian refineries could absorb a large portion of those barrels, but it is still unclear how cash sales would be effected without using the U.S. or European bank systems after April 28, the deadline set by the U.S. Treasury.
Quevedo’s willingness to barter goods for oil suggests the turn may not soon resolve the country’s need for cash-paying customers to replace U.S. buyers.
Since the US payment discharge restrictions about 9 million barrels of oil were stuck most are anchored in Gulf Coast and in US as Venezuela’s self-proclaimed US supported presidet Juan Guaido moves to an escrow accounts to receive payment.