How Iran Delivers Oil to an Ally – Reuters

By Marianna Parraga

HOUSTON – In March, a tanker owned by Venezuela made its way to a remote location in the Indian Ocean where it met an Iranian-flagged vessel to take on a cargo of Iranian condensate before returning home. This ship-to-ship exchange, conducted near The Maldives, marks a continuing strategy by both countries to maintain oil shipments to markets in the face of U.S. sanctions. The deepening energy partnership is enabling cash-strapped Venezuela to secure supplies necessary for refining its extra-heavy oil and enhancing exports.

This month, two very large crude carriers (VLCC) from Iran were spotted in Venezuelan waters, delivering imported condensate and crude to the state-owned oil company, PDVSA. This development coincided with a meeting in Caracas between Iran’s Oil Minister Javad Owji and Venezuelan President Nicolas Maduro.

Since 2020, Iran has supported Venezuela by sending gasoline and equipment to upgrade PDVSA’s aging refineries, with one facility set to restart this month after an extended revamp.

The tanker Maximo Gorki, managed by PDVSA’s maritime division, PDV Marina, is currently the only supertanker remaining in Venezuela’s fleet, following the loss of three others to PetroChina in a debt-related dispute in 2020. Although primarily used for domestic oil transport, it has also carried crude to Asia since the U.S. imposed sanctions on Venezuelan oil in 2019.

Earlier this year, PDV Marina arranged for a new crew to be sent to China to retrieve Maximo Gorki after it was stranded for weeks due to mechanical issues. In March, the vessel completed unloading Venezuelan heavy crude in the South China Sea.

Shortly after, the Maximo Gorki loaded Iranian condensate through a ship-to-ship transfer approximately 37 nautical miles from The Maldives, from a vessel named Huge, belonging to the National Iranian Tanker Company (NITC). Identification of the vessels involved has not been independently verified, and neither PDVSA nor NITC has responded to inquiries.

The Maldivian government has yet to comment on the matter, though the transfer took place outside its territorial waters.

While this method of exchange is new for Venezuela, Iran has previously conducted similar operations in waters near the Maldives. Claire Jungman, chief of staff at United Against Nuclear Iran, noted that the location is advantageous for Iran, taking about five days for its tankers to travel from Khor Fakkan to Male, the capital of The Maldives.

The supertanker docked back in Venezuela last week, unloading a portion of its 2-million-barrel cargo of Iranian condensate. This followed the arrival of Iranian vessels Dino I and Derya, which delivered Iranian heavy crude and condensate as part of a swap agreement made last year between the oil companies of both nations.

An additional 2 million barrels of Iranian oil and 1 million barrels of condensate are expected to arrive this month. PDVSA plans to send heavy crude and fuel oil to Iran’s National Iranian Oil Company in exchange.