Venezuela's New Oil Strategy: Exporting 'Blend 22' Amid U.S. Sanctions

Venezuela plans to export a new crude blend, 'Blend 22,' to offset revenue losses from U.S. sanctions. The country aims to attract European and Asian customers with this new grade. PDVSA is increasing production and storage as part of its strategy to circumvent sanctions and maintain oil sales.

Venezuela is set to start exporting a new medium crude blend called 'Blend 22' this month, according to trading documents. This move is part of a broader marketing strategy designed to sustain oil revenues as the country prepares for the expiration of licenses due to U.S. sanctions.

The U.S. Treasury's recent revocation of key licenses had allowed PDVSA's partners to transport Venezuelan crude to several countries. This revocation means the companies involved, including Chevron and Repsol, must cease operations by May 27, prompting PDVSA to reorganize its production and export strategies.

'Blend 22,' originating from PDVSA's Western fields, is being marketed to European and Asian buyers interested in medium sour grades. The first export cargoes have been allocated to France's Maurel & Prom, with shipments being arranged by trading house Vitol. Venezuela's attempts to refine more crude domestically are aimed at avoiding past fuel shortages exacerbated by U.S. sanctions.

(With inputs from agencies.)