January 29, 2019

Factbox: US sanctions PDVSA, creating likely major diversions of crude, diluent flows

Featuring Elizabeth Rosenberg

Source: Platts

Journalists Brian Scheid, Jeff Mower

The Trump administration Monday announced sweeping sanctions on PDVSA, Venezuela' state-owned oil company, a move which could ultimately block roughly 500,000 b/d of US imports and is expected to immediately shutdown roughly 120,000 b/d in diluent the US ships to the South American nation.

The sanctions are aimed at cutting off the regime of Venezuelan President Nicolas Maduro from oil revenues and diverting those revenues to the still-forming regime of opposition leader Juan Guaido, who the US formally recognized last week as the country's legitimate president.

While the sanctions are widely viewed as a de facto ban on US import of Venezuelan crude, the US Treasury Department coupled the sanctions with general licenses for US companies doing business with PDVSA and a wind down period which will allow most US imports of Venezuelan crude to continue for the next three months.

Read the full article and more in S&P Global Platts.

  • Elizabeth Rosenberg

    Senior Fellow and Director, Energy, Economics and Security Program

    Elizabeth Rosenberg is a Senior Fellow and Director of the Energy, Economics, and Security Program at the Center for a New American Security. In this capacity, she publishes a...