By Marianna Parraga (Reuters)– The brand-new head of Venezuela’s state oil business PDVSA has actually put on hold most oil export agreements while his group examines them in a transfer to stay clear of settlement defaults, according to an inner paper seen by Reuters and also individuals acquainted with the issue.

Since united state trading permissions were initial troubled PDVSA in 2019, the business has progressively resorted to obscure intermediaries to designate its oil exports, resulting in large cost discount rates and also troubles with repayments impacting its cashflow.

The freeze order is resulting in port hold-ups, as vessels that were packing have actually been sent out away and also are waiting on brand-new instructions, individuals stated.

PDVSA’s brand-new Chief Executive Pedro Rafael Tellechea recently contacted the heads of the business’s departments of supply and also profession, residential market, global market, funds and also international events and also alerted them of the agreement suspensions. The letter did not define how much time the freeze would certainly last.

Tellechea, a designer finished from a military college that is likewise running state petrochemical business Pequiven because 2019, was selected onJan 6 to PDVSAby President Nicolas Maduroalong with 8 brand-new vice head of states.

The suspension thus far has actually impacted obscure companies that work as intermediaries in PDVSA’s sales to Asian refiners. Cargoes hired by united state oil company Chevron Corp CVX.N and also Cuba’s Cubametales have actually not been impacted by the agreement alteration, according to different papers and also the resources.

As ofJan 17, a lot of berths at Venezuela’s primary oil terminal, Jose port, were vacant and also over a lots vessels went to the anchorage location waiting on guidelines. At various other terminals, ship-to-ship transfers were disrupted and also some consumers were advised to pre-pay freights totally prior to distribution, individuals stated.

PDVSA and also Venezuela’s oil ministry did not promptly respond to ask for remark.

PDVSA’s previous management in 2014 had actually enforced brand-new agreement terms to its area consumers, requiring early repayment of a the very least fifty percent of the freights’ worth, an approach to stay clear of vessels dived in without correct settlement, a scenario that has actually struck its funds in recent times in the middle of united state permissions.

Less than a handful of consumers are presently licensed by Washington to trade Venezuela- beginning freights, consisting of Chevron, Italy’s Eni ENI.MI and also Spain’s Repsol REP.MC; so the lion’s share of PDVSA customers are companies without performance history of trading and also no credit score warranties. The united state federal government has actually recognized much of these companies as covering business.

Venezuela’s oil exports in 2014 decreased 2.5% to 616,540 barrels daily as a result of facilities failures, united state permissions and also climbing competitors in its trick Asia market in spite of help from ally Iran, according to delivering information and also papers.

By Marianna Parraga (Reuters)