Exclusive: Venezuela ends Algeria oil imports due to logistical, price issues - sources

[Zorro]

Venezuela's state-run oil company PDVSA has stopped purchases of Algerian light crude to blend with its extra-heavy oil because of technical problems and disagreements with the seller, sources said.

The decision ends a cost-saving effort launched in October to use Algerian Saharan Blend instead of costlier heavy naphtha as a diluent for domestic Orinoco Belt crude, the oil that accounts for about 40 percent of Venezuela's output.

PDVSA had mixed up to 4 million barrels of Algeria's light crude into its extra heavy oil to make blends for export, mainly to the United States and China, according to Reuters vessel tracking data.

In January it resumed international tenders to buy heavy naphtha to use as a diluent, according to documents seen by Reuters, raising questions about how the company would continue to cut operational costs as sinking oil prices erode Venezuela's revenue and force the government to seek foreign credit.

http://news.yahoo.com/exclusive-venezuela-ends-algeria-oil-imports-due-logistical-192421147--finance.html

[MADem]

1. ...because of technical problems and disagreements with the seller...

Is that code for "The Venezuelan check bounced...AGAIN?"

They have no line of credit with anyone who wants to get paid--they are the "dine and dashers" of the western hemisphere, and they have a bad reputation as a consequence....