Venezuela Welcomes First Naphtha Cargo Amid U.S. Oil Deal

Venezuela's oil industry sees a crucial development as the first naphtha cargo arrives as part of a new oil deal with the U.S., marking a significant step in the ongoing $2 billion bilateral agreement. This shipment is essential for diluting Venezuela's extra-heavy crude oil.

Venezuela has received its first cargo of naphtha, an integral part of an oil agreement struck with the United States this month, according to ship tracking data. The tanker, chartered by trading giant Vitol, reached Venezuelan waters on Friday.

The deal, orchestrated after the U.S. detained Venezuelan President Nicolas Maduro, includes a $2 billion framework to distribute 50 million barrels of stored Venezuelan oil. Additionally, it gives firms like Vitol and Trafigura preliminary access to Venezuela's oil for resell globally while facilitating the supply of heavy naphtha to manage the country's dense oil output.

The United Kingdom-flagged Hellespont Protector tanker, loaded with approximately 460,000 barrels of heavy naphtha from the U.S., was nearing Venezuela's Jose port for a scheduled discharge. Due to U.S. sanctions that have impeded other suppliers, Venezuela's oil industry had been facing significant challenges due to shortages in essential blending chemicals.

(With inputs from agencies.)