Mexican firm takes millions of barrels of Venezuelan crude in oil-for-food swap

Venezuela has swapped millions of barrels of crude for supplies of corn and water trucks under an oil-for-food deal struck with a Mexican firm, in an effort to secure imports amid tightening U.S. sanctions, according to the company and loading schedules. As Venezuela's state-run oil company PDVSA has seen its portfolio of customers dwindle due to the U.S. sanctions aimed at ousting socialist President Nicolas Maduro, Mexican firm Libre Abordo SA has emerged as a major lifter of its crude.

Libre Abordo, which has no previous experience in the oil sector, has so far taken 6.2 million barrels of Venezuelan heavy crude for re-sale in international markets and has two more cargoes of oil and fuel due to be loaded this month, according to PDVSA exports programs reviewed by Reuters. In a statement sent to Reuters, Libre Abordo said it signed a contract last year to export Mexican corn and water trucks to Venezuela in return for supplies of oil and that the contract was still in effect.

The company said it had consulted lawyers concerning the transaction and had been advised that there was no violation of the U.S. sanctions as there were no cash payments involved because the oil was received to offset food aid. Libre Abordo declined to disclose the name of the legal firm that provided the advice, though it sent Reuters a copy of the analysis.

The U.S. Treasury department, PDVSA and the Venezuelan government did not immediately reply to requests for comment.