dailynewsnblog
By Marianna Parraga
HOUSTON, July 7 (Reuters) – Geneva-headquartered trader Vitol is making early preparations to open an office in Venezuela, three sources with knowledge of the matter said, as global trading houses expand their role in the OPEC country’s oil exports under a pact agreed between Caracas and Washington earlier this year.
Vitol, Trafigura and other trading firms have been exporting the lion’s share of Venezuela’s oil output this year under agreements with state oil company PDVSA that are overseen by President Donald Trump’s administration, redirecting barrels once bound for China to the U.S., Europe and the Caribbean.
An initial $2 billion oil supply pact agreed with Vitol and Trafigura in January for up to 50 million barrels of oil exports through the traders was later expanded to more than 100 million barrels, U.S. and Venezuelan officials have said.
Despite the rapid growth of oil trading deals, foreign investment encouraged by Washington has developed more slowly, with companies signing non-binding letters of intent and technical agreements while assessing conditions to determine whether to return to Venezuela or expand operations there.
Vitol’s plans to strengthen its position in the South American country suggest confidence in the continuation of the oil pact while potentially opening the door to additional business opportunities, the sources said. The Caracas office would initially offer jobs to about a dozen people, mainly in trading-related roles, one of the sources said.
“For many years Vitol has had a strong relationship with PDVSA,” Henry Medina, Vitol’s head of Latin America, told Reuters in an email, without elaborating on specific plans. “We look forward to building on this and developing additional partnerships in Venezuela, as well as a meaningful presence in the country.”
The Venezuela unit is expected to be led by Mario Pantoja, who worked for Chevron for 35 years and most recently managed the company’s oil marketing business in Venezuela, two of the sources said.
Chevron began expanding its workforce in the country after receiving a broad U.S. license for Venezuela in late 2022, giving it a head start when the U.S. announced a $100 billion energy reconstruction plan for Venezuela and began lifting sanctions this year.
Chevron is now competing with Vitol and Trafigura for market share, while negotiating oilfield expansions in Venezuela expected to lead to higher output and exports.
Trafigura, meanwhile, has already opened an office in Caracas following the oil deal it signed with Venezuela and currently has two employees there. Most of the company’s traders covering the region are based in Montevideo, Uruguay, where its back office functions are located, separate sources said.
