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gCaptain/Reuters: Venezuela Faces Hurdles Clearing 24 Million Barrel Backlog at Ports
By Marianna Parraga June 6 (Reuters) – Venezuela is nearly a month behind in shipping crude to customers from its main oil export port, according to Reuters data, as chronic delays are compounding production declines and could breach state-run PDVSA’s crude supply contracts if they are not quickly cleared.
The oil company in recent days has raised the prospect that deliveries could be interrupted to some of the world’s largest refiners if it fails to end a tanker bottleneck contributing to a sharp decline in oil exports, the lifeblood of the OPEC-member nation. Tankers waiting to load more than 24 million barrels of crude, almost as much as PDVSA shipped in April, are sitting off the country’s main oil port, according to the data. The backlog is so severe, the company has told some customers it may declare force majeure, allowing it to temporarily halt contracts, if they do not accept new delivery terms.
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WNU Editor: This is the lifeblood of the Venezuelan regime. But years of infrastructure neglect. Workers being fried or leaving their jobs. Corruption. The list is long on why Venezuela's oil industry is in the state it is in today .... and it can only get worse.
Hat tip to Pierre for this link.
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