US oil major Chevron has chartered of a Greek VLCC that was recently sanctioned by the US Office of Foreign Assets Control (Ofac), the oil major has confirmed.
In an emailed statement, Chevron spokesman Ray Fohr said his company’s shipping arm fixed the 306,500-dwt Seahero (built 2006) on a short time charter.
“The VLCC…is currently performing a voyage that is not related to Venezuela,” added Fohr, without elaborating.
Data from Kpler shows the Bahamas-flagged ship is sailing to the Chinese port of Ningbo after loading oil from Saint Croix and Trinidad and Tobago.
On Tuesday, the Ofac put the Seahero and its registered owner Adamant Maritime on the sanctions list for allegedly lifting Venezuelan oil as recently as late February.
Adamant is believed to be a special purpose company. Greek owner Thenamaris lists the ship as part of its fleet on the company website.
Legal pressure
According to legal sources, sanctioned ships have a chance of being abandoned by insurers and flag states, and their owners and operators are advised to find a safe port and negotiate with the US authorities at the soonest.
“We are working with the appropriate government agencies to ensure compliance with US laws and regulations,” Fohr said.
He did not comment on whether Chevron plans to terminate the charter. Brokers suggested the deal was agreed in late April, but additional information on the rate and period length is not available.
Having imposed sanctions on Venezuela’s oil sector in January 2019 to drive out President Nicolas Maduro, the US has continued to offer Chevron a waiver to maintain its operations with the Opec member.
Joint ventures
According to Chevron’s website, the company has participated in five production projects in Venezuela and has four joint ventures with sanctioned Petroleos de Venezuela – the South American country’s national oil company.
However, Ofac in April significantly narrowed the scope of exemption for Chevron, ordering the company not to drill, lift, process, deal or ship any Venezuelan-origin oil.
Chevron is now only allowed to take part in unspecified “limited maintenance of essential operations” until 1 December, according to Ofac.
