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Chevron (NYSE:CVX) has begun delivering fuel to Venezuela’s state-run oil company PDVSA, Reuters reported Thursday, after the Biden administration recently eased sanctions on the country’s oil sector.
Under terms that imply an expansion of the previous swap deal, Chevron (CVX) has begun supplying PDVSA with fuel including naphtha and gasoline blend stock, according to the report.
The first vessel under the arrangement arrived in Venezuela’s Jose port this week carrying 450K barrels of heavy naphtha for PDVSA, and a second tanker was being chartered this week to transport 240K barrels of gasoline blend stock for November delivery, Reuters said.
It is not yet clear if the fuel shipments will be compensated with Venezuelan crude or under a different payment mechanism, the report said; the license clears the way to make and receive payments from Venezuela, and to procure goods and services for oil and gas projects.