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LATIN AMERICA ADVISOR

Energy ADVISOR

A daily publication Of the dialogue

May 23, 2025

Can Shadow Tankers Keep Venezuela’s Oil Sector Afloat?

Venezuelan oil shipments to China have been increasingly redirected through informal channels in recent months, according to Reuters’ analysis of shipping data. // File Photo: Yaroslav via Adobe Stock.

Q

A

Luis A. Pacheco, nonresident fellow at the Baker Institute Center for Energy Studies: ““As the expiration date of oil licenses looms closer, PDVSA will be forced to rely on ‘rogue’ trading even more, as it indeed did during the first Trump presidency. Venezuela could continue to exploit such channels to maintain its oil exports, even if sanctions are tightened. As to how long that will be a sustainable solution, it will depend on the Americans’ willingness or efficacy in enforcing the so-called secondary sanctions on buyers and transporters. Moreover, these cargoes will have to compete in China, the preferred destination, with Iranian and Russian crudes in terms of prices and refinery yields, and will be sold at steep discounts, not to forget that part of those volumes also serve as debt repayment to the Chinese. If foreign companies finally exit Venezuela…”

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ABOUT THE Energy ADVISOR

A sister publication of the Inter-American Dialogue’s daily Latin America Advisor, the weekly Energy Advisor captures fresh analysis from business leaders and government officials on the most important developments in oil and gas, biofuels, the power sector, renewables, new technologies, and the policy debates shaping the future of energy in the Western Hemisphere and beyond. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

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board of advisors

Nigel Blackaby
Global Head, International Arbitration Group,
Freshfields Bruckhaus Deringer

Jimena Blanco
Chief Analyst,
Verisk Maplecroft

María José Cortés
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Atlas Renewable Energy

Jeffrey Davidow
Senior Counselor,
The Cohen Group

Analia Gonzalez
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Jonathan C. Hamilton
Partner,
White & Case

Raul Herrera
Partner, Corporate &
Securities Practice,
Arnold & Porter

James R. Jones
Chairman,
Monarch Global Strategies

Jorge Kamine
Partner, Corporate &
Financial Services,
Willkie Farr & Gallagher

Craig A. Kelly
Senior Director,
Int’l Government Relations,
Exxon Mobil

Jeremy Martin
Director,
Energy Program,
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Larry Pascal
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Practice Group,
Haynes & Boone

R. Kirk Sherr
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Daniela Stevens
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Energy Transition and Climate Program,
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Doris Rodríguez
Partner,
Hunton Andrews Kurth

Alexandra Valderrama
Director,
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Affairs, Chevron

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