Mercuria Energy Group Ltd., a commodities trading house headquartered in Geneva, has entered talks with Venezuela’s state oil company PDVSA about possible purchases of crude, according to people with direct knowledge of the discussions who asked not to be identified because the conversations are not public. The engagement reflects growing interest from international traders after a loosening of U.S. measures targeting Venezuela’s oil sector.
This move places Mercuria alongside other major commodity traders such as Trafigura Group and Gunvor Group, which have already acted to secure Venezuelan crude supplies. Market participants and industry observers say the country is attempting to restore its petroleum sector after years of decline under the weight of sanctions.
Venezuela has seen a dramatic fall in oil output over the last decade, with production sliding from roughly 2.5 million barrels per day to under 800,000 barrels per day in recent years. The nation nevertheless retains the world’s largest proven oil reserves, a factor that continues to draw attention from international buyers and traders as opportunities reopen.
The U.S. government temporarily relaxed restrictions on Venezuelan oil last year, opening a window for foreign trading houses and other market participants to reengage with PDVSA. The administration has cautioned, however, that sanctions relief could be reinstated if President Nicolas Maduro does not fulfill commitments tied to democratic elections.
Representatives for both Mercuria and PDVSA declined to comment on the talks when approached.
For traders and companies involved in crude sourcing and logistics, the reemergence of Venezuelan supplies could offer new commercial options. At the same time, the pace and scale of Venezuela’s recovery in output remain constrained by the prior loss of production capacity.
Because the discussions are not public and official statements have not been made, the outcome and timing of any potential supply agreements remain uncertain.