What are the ‘Ghost Ships’ Venezuela is Using to Evade Oil Sanctions?
Venezuela, home to the world’s largest proven oil reserves, faces a turbulent landscape due to U.S. sanctions targeting its state-run oil company, PDVSA. These restrictions have driven the Venezuelan government to adopt increasingly clever tactics, including a clandestine fleet of ghost ships to continue its oil exports. Here’s an in-depth look at these vessels, their operations, and the wider implications.
Understanding Venezuela’s Ghost Ships
– Escalating Tensions: Recently, President Trump announced a naval blockade aimed at stopping sanctioned oil tankers from entering or leaving Venezuela. Notably, on December 10, the U.S. seized an oil tanker off the country’s coast.
– Current Sanctions Landscape: As of last week, data from TankerTrackers.com indicated that over 30 of the 80 ships either operating in Venezuelan waters or approaching the country were under U.S. sanctions. This blockade represents a significant effort to target the ghost fleet involved in oil smuggling.
– Historical Context: U.S. sanctions against Venezuela’s oil sector commenced in 2019, leading to a dramatic decline in crude exports — from around 1.1 million barrels per day in January to nearly 495,000 by year’s end, according to the U.S. Energy Information Administration. However, by November, oil exports had surged to approximately 920,000 barrels per day, suggesting that the sanctions may not be as effective as intended.
The Role of Ghost Fleets
– Global Phenomenon: Ghost fleets are not exclusive to Venezuela; countries like Russia and Iran also utilize similar strategies to circumvent sanctions. Financial intelligence firm S&P Global estimates that one in five oil tankers globally engages in smuggling operations, with 10% of these dedicated to Venezuelan oil.
– Operational Tactics:
– Frequent Name Changes: Ghost ships often change their names or flags multiple times within a month to evade detection. For example, a recently seized vessel originally named Adisa and later Toyo has been under U.S. sanctions since 2022.
– Usage of ‘Zombie Ships’: Some vessels steal the identities of scrapped ships by using their registration numbers — a tactic known as employing zombie ships. A prominent case is the Varada, discovered to be a zombie ship disguised as an operational vessel.
– Disguising Cargo Origin: Ships regularly transfer crude oil at sea to legally compliant tankers, concealing the oil’s Venezuelan origin. This practice has facilitated exports to nations like China despite U.S. sanctions.
– Disabling Tracking Systems: Many ghost ships turn off their Automatic Identification Systems (AIS), enabling them to hide their identities and movements. Maritime risk firm Vanguard Tech noted that the seized tanker, The Skipper, had been spoofing its location signals for an extended period.
Recent Discoveries and Reports
– Extensive Smuggling Operations: An October report from Transparencia Venezuela revealed the presence of 71 foreign tankers at PDVSA ports, including 15 that are sanctioned. They identified 24 vessels operating stealthily with tracking systems disabled, raising significant concerns about their activities.
– Flags of Convenience: Many of these ships register under flags from countries with lax oversight, such as Panama and Malta, allowing them to evade regulatory scrutiny.
Conclusion
As the United States intensifies its efforts against Venezuela’s ghost fleet, the tactics employed by these vessels underscore a complex web of evasion strategies. The ongoing use of ghost ships highlights the formidable challenges of enforcing sanctions in an interconnected global economy where vessels can operate under the radar. The outcome of this escalating struggle will likely shape not only Venezuela’s oil industry but also the broader geopolitical dynamics in the region.