Algeria to Supply Crude to Cuba

Algeria to Supply Crude to Cuba

Algeria is sending crude oil to Cuba for the first time to help offset lower supplies from the island’s closest ally, Venezuela. Algeria’s state-owned Sonatrach plans to ship about 515,00 barrels of crude to Cuba in October, with a possible second cargo loading in November or December, Reuters informed.

It is reported that the Venezuelan state-owned oil and natural gas company, Petróleos de Venezuela (PDVSA), will be mediating the Algerian crude sale to Cuba’s Cienfuegos refinery, in which it holds a 49% stake, according to Rigzone.

Cuba and Algeria have maintained a close relationship in recent years. The island annually imports about $200m to $300m of oil products from the African country, including some purchases of naphtha. But Cuba relies almost exclusively on Venezuela, also a member of Organization of the Petroleum Exporting Countries (OPEC), for its crude supplies through a 15-year-old assistance program that Caracas has been struggling to maintain as power cuts, lack of investment and payment delays slash its oil output. As a result, Venezuelan crude supplies to Cuba have declined by 40% in the first half of 2016.


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