Venezuelan Oil Too Costly for Japan, Says Top Refiner

A major Japanese oil refiner says it will not buy Venezuelan crude, even if international sanctions are lifted. The company claims the heavy oil is too expensive to process. Idemitsu Kosan's chairman, Shunichi Kito, stated that Venezuelan oil is "difficult to use" in Japan's refineries. The main issue is the high cost of removing impurities to make it usable. "Even if the sanctions are lifted, it is not economical for us," Kito said. He explained that the extra processing makes Venezuelan crude uncompetitive compared to oil from other regions. This announcement highlights a significant challenge for Venezuela. The country hopes to rebuild its oil exports as the U.S. eases some sanctions. However, regaining key Asian customers like Japan may be difficult due to these economic and technical hurdles. Venezuela's heavy crude requires special refining equipment. Many Japanese plants are not designed to handle it efficiently, leading to higher costs.