Venezuela strike hits 2m barrels Reliance crude oil import

Vol 6, PW 21 (18 Dec 02) News in Brief

The ongoing strike by workers of Venezuelan state oil corporation Petroleos de Venezuela against president Hugo Chavez has hit a crude oil shipment contracted in November by Reliance Industries.

Traders tell PETROWATCH that late Tuesday, 17th December, Reliance cancelled the contract for 2m barrels of Venezuelan crude that could not be loaded at a Venezuelan port for delivery to Jamnagar. "The Very Large Crude Carrier (VLCC) was stuck in the port due to the labour unrest and could not be loaded.

The port authorities declared 'force majeure' and Reliance cancelled the contract." We learn Reliance has not yet made up its mind where to make up the shortfall. "They will have to cover with a spot deal, maybe from the Middle East."