PDVSA diluent imports from US fuel Venezuela’s heavy crude exports
Venezuela's state oil company is importing US light hydrocarbons to thin its extra-heavy crude, a move authorized under a specific OFAC license. Here's how this trade works and why it matters for regional energy markets. The post PDVSA diluent imports from US fuel Venezuela’s heavy crude exports appeared first on The Rio Times .
The United States recently authorized imports of diluents from Venezuela to help keep the country's heavy crude exports flowing. Venezuela's Orinoco Belt holds some of the world's largest reserves of extra-heavy crude, which is nearly solid at room temperature and too dense to flow through pipelines or into tankers. To transport the thick oil, PDVSA must mix it with a lighter hydrocarbon known as a diluent, typically light crude or naphtha.
The resulting blend, known as Merey 16, is the export grade that foreign refiners purchase. Without a steady supply of diluents, PDVSA's production would effectively come to a halt. This trade is permitted under US Treasury OFAC General License 47, which was issued on February 3, 2026. The license specifically allows the export of US-origin diluents, like light hydrocarbon products, to Venezuela solely for the purpose of supporting heavy-crude blending and transport.
Compliance lawyers stress that the license refers to diluents as products, not raw crude, making the definition legally ambiguous. Reports indicate that Venezuela imported approximately 81,000 barrels per day of heavy naphtha in July 2026 for dilution. This import volume is separate from Chevron's Venezuelan joint ventures, which produced around 293,000 barrels per day in July under their own licences.
Overall US imports of Venezuelan crude reached about 786,000 barrels per day in July, a seven-year high, reflecting a 113% increase compared to the first half of 2026. As sanctions are eased, the trade between Venezuela and the US is shifting from middlemen to direct deals between refiners. Trading firms such as Vitol, Trafigura, and Novum Energy shipped about 604,000 barrels per day in July, down from 775,000 barrels in June.
For investors and Latin American stakeholders, PDVSA's diluent imports serve as an indicator of the progress of US-Venezuela rapprochement. The legalities surrounding the diluent imports create compliance risks for those involved in the trade, and staying informed on license interpretations is essential to avoid potential enforcement actions.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
