An oil supertanker seized by U.S. authorities that was carrying Venezuelan crude is due to move some of its cargo to a smaller vessel positioned to take the oil to shore, according to ship tracking data reviewed on Wednesday.
The vessel, named Skipper, was carrying roughly 1.8 million barrels of crude when it was seized in December. The U.S. government filed for ownership of the tanker and its cargo last month through a forfeiture process, which permanently transfers title of a vessel and its contents to the government in cases involving alleged violations such as sanctions or smuggling. The seizure of the Skipper was reported as the first oil tanker taken under a U.S. campaign of stepped-up pressure against Nicolas Maduro before the Venezuelan president was captured in January.
Ship movement platforms LSEG and Kpler showed that a medium-sized vessel, PVT Poseidon, was en route to the Skipper to take part of the crude cargo and is then expected to proceed to shore. The Skipper cannot transit the Houston Ship Channel because of its size and has remained anchored outside Galveston since the December seizure.
The U.S. government is pursuing forfeiture of the tanker - a legal process under which a vessel and cargo are permanently seized without compensation when authorities allege violations such as sanctions breaches or smuggling. The outcome of that legal action will determine ultimate ownership and control of both the ship and its cargo.
U.S. forces have intercepted 10 tankers since December and released at least two of them to the interim Venezuelan government, according to Reuters analysis. When oil from seized ships is sold, proceeds are typically directed to funds associated with U.S. victims of state-sponsored terrorism, the reporting said.
Industry sources in shipping and insurance have expressed concern about seized tankers remaining anchored for extended periods. Many of the Venezuela-linked ships taken into custody were built more than 20 years ago, exceed the industry standard age of 15 years, and often lack current safety certification and adequate insurance. Those conditions complicate efforts to establish insurance claims or liability in the event of a collision or oil spill, potentially making claims difficult to impossible to resolve.
The age and condition of older tankers also raise the prospect of environmental damage if an incident occurs, according to the same shipping and insurance industry sources. These concerns underscore the logistical and regulatory challenges involved when large, aging tankers are detained and then need to offload cargo at sea and move product to shore by smaller, more port-accessible vessels.
Key points
- Skipper, a supertanker seized in December, carries about 1.8 million barrels of Venezuelan crude and has been anchored outside Galveston because it cannot transit the Houston Ship Channel.
- PVT Poseidon is expected to transfer part of the Skipper's cargo and then proceed to shore, according to LSEG and Kpler tracking data.
- The U.S. has intercepted 10 tankers since December and released at least two to the interim Venezuelan government, and is pursuing forfeiture of the Skipper and its cargo.
Risks and uncertainties
- Older, seized tankers often lack adequate insurance and safety certification, complicating liability and claims processes if a collision or spill occurs - impacting shipping, insurance, and environmental sectors.
- The legal forfeiture process will determine the final ownership and disposition of the vessel and its cargo, creating uncertainty for stakeholders and markets until resolved.
- Anchored, aging vessels raise elevated environmental risk should they experience structural failure or a spill, with potential repercussions for coastal ecosystems and related economic activity.