Valero Energy Expands Venezuelan Crude Imports as U.S. Sanctions Ease

Valero Energy is poised to become the leading foreign refiner of Venezuelan crude oil as it prepares to import up to 6.5 million barrels in March for its Gulf Coast refineries. The planned shipments, equivalent to roughly 210,000 barrels per day (bpd), could position Valero ahead of Chevron as the top U.S. refiner processing Venezuelan oil. This marks the largest volume of Venezuelan crude Valero has handled since U.S. sanctions were first imposed on Venezuela’s oil industry in 2019.

The surge in imports follows a major $2 billion oil supply agreement between the United States and Venezuela’s interim government, alongside a gradual easing of sanctions. Valero was among the first U.S. refiners to resume Venezuelan crude imports under newly issued general licenses. If the company secures 10 or more cargoes in March, it will significantly increase its access to heavy crude supplies essential for its refining operations.

Chevron, currently the only U.S. oil major producing in Venezuela, is expected to raise exports to about 300,000 bpd in March, up from 220,000 bpd in January. Historically, Chevron refines about half of its Venezuelan crude at its own facilities and sells the remainder to other U.S. refiners, with Valero typically purchasing a substantial portion.

Valero has also negotiated additional cargoes with global trading firms such as Trafigura, while Vitol has scheduled naphtha shipments to Venezuela’s state-owned PDVSA. However, loading schedules remain subject to change, and PDVSA is reportedly limiting direct sales to companies holding individual U.S. licenses due to regulatory uncertainties.

With expanded refining capacity at its Port Arthur, Texas refinery, Valero is now positioned to process greater volumes of Venezuelan heavy oil. Meanwhile, Venezuela’s oil production has rebounded to approximately 1 million bpd, with exports climbing to around 800,000 bpd in January. As U.S. authorizations continue to support oil exports and investment, Venezuelan crude shipments to Gulf Coast refiners are expected to rise further in the coming months.