Venezuela’s state-run oil company PDVSA has resorted to floating storage by filling oil tankers anchored offshore as onshore storage tanks near capacity in late December 2025. This step comes amid mounting crude inventories caused by recent U.S. seizing vessels linked to Venezuelan oil exports. The use of floating storage allows PDVSA to maintain its production output, which averages about 1.1 million barrels per day, despite logistical challenges.

U.S. Sanctions and Seizures Drive Adoption of Floating Storage

The U.S. Coast Guard recently intercepted two fully loaded Venezuelan crude tankers, Skipper and Centuries, in the Caribbean Sea. Additionally, a third empty tanker approaching Venezuela is currently being pursued. These seizures are part of a blockade enforced under the Trump administration’s sanctions regime targeting vessels involved in transporting Venezuelan oil. The measures have unsettled shipping firms, leaving at least a dozen crude cargoes stranded in Venezuelan waters awaiting clearance for export.

This export disruption has increased pressure at key Venezuelan terminals, especially the Jose facility, a primary hub for heavy crude from the Orinoco Belt. Data show onshore stocks at Jose have climbed to 12.6 million barrels in December, rising from the 9 to 11 million barrels range maintained since September and nearing this year’s peak of 14 million barrels. Overall national crude inventories stand at 22 million barrels, marking the highest level since August, according to trade data from Kpler.

Chevron Partnership and Customer Negotiations Amid Export Strains

While PDVSA faces shipping constraints, its main joint-venture partner Chevron has continued to export roughly 130,000 barrels per day, equivalent to about 25% of the Orinoco Belt blend production. The remaining 75% of crude, predominantly destined for China—which took around 80% of Venezuela’s crude exports in 2025—is more directly affected by the sanctions-induced disruptions.

PDVSA has pressed customers to keep accepting cargoes at Jose port, but resistance has grown following additional U.S. seizures last weekend. The company is turning to floating storage as negotiations on price discounts and contract terms intensify. Some buyers are even seeking to return shipments to Venezuelan ports. PDVSA officials discussed the possibility of a force majeure declaration to suspend export obligations but ultimately rejected the move, preferring individual negotiations with clients.

President Nicolas Maduro affirmed that deliveries to Chevron will continue despite escalating political tensions with Washington, stating in a recent speech, “(Under) rain, thunder, or lightning, and regardless of any conflicts, the contract with Chevron will be fulfilled.”

Policy Measures Amid Rising Blockade Pressures

In reaction to increased external pressures and what Venezuela terms as piracy or blockades against its oil shipments, the National Assembly—controlled by Maduro’s party—passed legislation imposing prison sentences of up to 20 years for individuals financing or promoting such actions. This legal move aims to deter further interference with the country’s strategic energy exports.

PDVSA’s adoption of floating storage marks a critical response to constrained onshore capacity and tighter U.S. sanctions enforcement. Managing the growing oil inventories without production cuts remains essential as the company navigates continued export uncertainty and customer negotiations.

Floating storage will likely remain a pivotal tactic for Venezuela to handle crude volumes while addressing the ongoing disruption to its export infrastructure.