FILE PHOTO: An oil tanker is seen at Jose refinery cargo terminal in Venezuela in this undated file photo. Photo: Reuters

i24 News – An Iran-flagged supertanker on Saturday was about to set sail from Venezuelan waters carrying 2 million barrels of heavy crude provided by state-run oil firm PDVSA, Reuters reported citing vessel tracking services and official documents.

The shipment is part of a deal agreed by PDVSA and its counterpart National Iranian Oil Company (NIOC) that exchanges Iranian condensate for Venezuela’s Merey crude. The swaps aim to ease an acute shortage of diluents that has cut Venezuela’s oil output and exports.

Dino I, a very large crude carrier (VLCC) owned and operated by NIOC’s National Iranian Tanker Company (NITC), finished loading the Venezuelan oil at PDVSA’s Jose port late Friday.

The bilateral oil trade likely represents a breach of US sanctions on both nations.

The vessel arrived in Venezuela in September with its transponder turned off while carrying 2.1 million barrels of Iranian condensate.

A second condensate cargo of similar size is expected to be delivered to Venezuela in the coming weeks as part of the swap routine, which will be in effect for six months in its first phase.

Iran and Venezuela have strengthened their cooperation in the last year, as well as bolstering their ties with China, America’s arch rival on the global arena.