PDVSA may buy 18 tankers from China

Petroleos de Venezuela SA (PDVSA) may buy 18 oil tankers from China for $1.3 billion as South America’s largest oil company seeks to boost exports to Asia. Preliminary orders for the tankers were placed with China State Shipbuilding Corp., and China Shipbuilding Industry Corp., a PDVSA spokesman said. A timetable wasn’t provided for deliveries and some details remain to be finalized but it is likely that the vessels involved will be a mixture of VLCCs and Aframax tankers.

Venezuelan president, Hugo Chavez, has repeatedly said he wants to add new customers for its crude to reduce its dependence on the U.S. market, which now takes more than 60% of daily shipments of about 2 million barrels a day. It is probable that payment of the newbuildings will be made in oil shipments and it is estimated that 10 days of Venezuelan oil production could pay the $1.3 billion price tag for the ships.