Venezuela’s state oil company PDVSA has begun using oil tankers as floating storage after mounting inventories overwhelmed onshore facilities, following a series of U.S. Coast Guard vessel seizures targeting Venezuela-linked crude shipments, according to Reuters.

The shift underscores the growing strain on Venezuela’s oil exports as Washington intensifies enforcement against what it describes as a “shadow fleet” carrying sanctioned crude, forcing PDVSA to adapt in order to avoid production shut-ins.

Why It Matters

Oil remains Venezuela’s primary source of hard currency. Disruptions to exports threaten government revenue, pressure relations with key buyers such as China, and complicate operations for foreign partners like Chevron, which continues limited crude exports under U.S. authorization.

What Happened

According to Reuters, PDVSA has started transferring crude and fuel oil from land-based tanks into docked tankers after inventories surged amid shipping disruptions.

This month, the U.S. Coast Guard intercepted two tankers — the Skipper and Centuries — in the Caribbean Sea while they were fully loaded with Venezuelan crude. U.S. authorities were also pursuing a third vessel approaching Venezuelan waters, according to Reuters.

The actions follow President Donald Trump’s announcement of a tougher enforcement posture against vessels subject to U.S. sanctions, a move that has discouraged shipowners from servicing Venezuelan cargoes.

Rising Inventories

PDVSA currently produces about 1.1 million barrels per day, with the bulk of output coming from the Orinoco Belt. Company documents reviewed by Reuters show that storage levels at the Jose terminal — Venezuela’s main crude hub — climbed above 10 million barrels by mid-December, up from roughly 9 million barrels a month earlier.

As tank capacity tightens, PDVSA has resorted to floating storage — a tactic it has used previously during periods of export disruption — to keep production steady.

Chevron and China Exports

Exports tied to PDVSA’s joint ventures with Chevron have continued, with the U.S. company accounting for roughly a quarter of crude blending at Orinoco facilities, Reuters reported.

However, PDVSA exports the majority of its remaining crude to China, which has received about 80% of Venezuelan oil shipments this year. U.S. seizures and enforcement actions have complicated deliveries, prompting PDVSA to negotiate discounts and adjust contracts with some buyers.

Government Response

Venezuelan President Nicolás Maduro said this week that oil shipments for Chevron would continue despite rising tensions with Washington.

“Under rain, thunder, or lightning, and regardless of any conflicts, the contract with Chevron will be fulfilled,” Maduro said in a televised address.

Chevron, for its part, said its Venezuelan operations remain compliant with U.S. laws and regulations, reiterating that exports continue without disruption.

What’s Next

PDVSA has so far avoided declaring force majeure on exports, instead pursuing case-by-case negotiations with customers. But with more vessels reluctant to call at Venezuelan ports, floating storage may expand further unless sanctions pressure eases or new shipping solutions emerge.

U.S. enforcement actions are expected to remain a key variable shaping Venezuela’s oil flows in the coming months.