Exclusive: Venezuela’s oil tankers at risk of sinking, fires, spills, report finds

An internal PDVSA analysis provided exclusively with Reuters found that more than half of Venezuela’s 22 oil tankers should be fixed or retired promptly.

PDVSA’s maritime division assessment, “Critical deficiencies and risks of PDV Marina’s tanker fleet,” stated that years of neglected maintenance had left the fleet with “low levels of reliability,” putting it at risk of spills, sinking, fires, collisions, and flooding.

“The ships currently lack seaworthiness classification and certifications by flag nations,” the report added.

PDVSA and PDV Marina declined comment.

PDVSA’s corporate office, trading division, marine branch, and Venezuela’s maritime authority exchanged eight reports on PDVSA’s tanker fleet with Reuters in March 2023. The documents were previously unknown.

The documents, from January to March 2022, describe the company’s tankers, chartering charges, and shipbuilding contracts with Argentina and Iran.

According to PDVSA’s trade division, the fleet’s degradation has prompted the company to rent tankers to transport oil, Venezuela’s main source of hard currency.

PDVSA and the oil ministry declined comment.

After discovering billions of dollars in missing petroleum export payments last October, Venezuelan President Nicolas Maduro authorized a broad anti-corruption probe. PDVSA’s CEO and oil minister were fired after more than 60 arrests.

PDV Marina advised retiring five tankers, sending seven to shipyards for substantial repairs, and putting transponders, fire extinguishers, and communication equipment in others. The company’s operations audit continues without action.

According to PDV Marina, five PDVSA tankers are over 30 years old. The report indicated the fleet’s last major repair was five years ago.

Due to advanced physical deterioration and rising maintenance and repair expenses, the tanker fleet is performing poorly. “Lack of payment to shipyards and providers has greatly impacted tanker dry dock planning,” the PDV Marina study noted.

Reuters reported an upsurge in Venezuelan tanker incidents, spills, and burns.

PDVSA leased 41 boats last year, paying tanker owners between $14,000 and $36,500 per day to work with Venezuela despite U.S. sanctions.

Ships delayed
According to Reuters data, payment delays, pricing increases, and sanctions have delayed at least four tankers contracted from foreign shipyards.

A PDVSA executive claimed Maduro’s anti-corruption probe’s audits ordered by Pedro Tellechea, PDVSA’s new CEO, could cause delays.

“All contracts are frozen,” the executive added under anonymity for fear of reprisal. He stated that PDVSA’s legal and supply and trade departments want contract papers from PDV Marina.

Venezuela paid Iranian and Argentine shipyards $300 million for six additional boats purchased in 2005.

Documents show it received only two.

The documents showed PDVSA paid approximately 80% of the $160 million payable for two tankers from Rio Santiago shipyard in Argentina.

Rio Santiago stated it was not permitted to discuss that arrangement.

The documents also show that PDVSA paid 63% of a 248 million euro contract (approximately $272 million) for four tankers to U.S.-sanctioned Iran Marine Industrial Company (Sadra).

According to papers, two of the four vessels were delivered following payment delays, parts shortages, and insurance and certification issues.