US Returns Seized Oil Tanker To Venezuela In A Strategic Move, Per Reports

The United States has returned an oil tanker it seized earlier this month to Venezuela, according to two U.S. officials familiar with the matter.

The move is the first known instance of the current U.S. administration returning a tanker linked to Venezuela’s oil trade.

The officials, speaking on condition of anonymity, said the vessel returned is the Panama-flagged supertanker M/T Sophia. They did not explain why the tanker was handed over to Venezuelan authorities.

The decision comes during a months-long U.S. effort to seize oil tankers connected to Venezuela. Since late last year, U.S. authorities have apprehended seven vessels as part of sanctions enforcement.

The M/T Sophia was intercepted on January 7 by the U.S. Coast Guard with support from U.S. military forces.

At the time, U.S. authorities described the tanker as a sanctioned vessel operating as part of a so-called dark fleet, stating that it was effectively stateless.

The tanker was carrying oil when it was seized, although one source said it is unclear whether the cargo remains on board.

Earlier this month, the Sophia and another seized tanker were observed near Puerto Rico, according to people familiar with vessel movements.

The return of the tanker follows increased U.S. pressure on Venezuela under President Donald Trump, whose Latin America policy has been focused on the country.

After diplomatic efforts to remove Venezuelan President Nicolás Maduro failed, Trump authorised a military operation earlier this month aimed at detaining Maduro and his wife.

Since then, Trump has stated that the United States plans to control Venezuela’s oil resources for the long term as part of efforts to rebuild the country’s oil industry, with investments estimated at $100 billion, according to third-party accounts of the administration’s position.

Shipping and insurance experts have warned that many tankers linked to Venezuela and operating under Western sanctions are more than 20 years old and often lack proper safety certification and insurance.

They have said this creates serious risks, as it becomes difficult or impossible to establish liability in the event of collisions or oil spills.

Separately, Dubai-based ship recycling company GMS has applied for a U.S. licence to purchase and scrap vessels seized by the U.S. government that are linked to Venezuelan oil trading.

References: Reuters, cnbc

Source: Maritime Shipping News