U.S. Returns Seized Oil Tanker to Venezuela Amid Ongoing Tensions

The United States has returned a seized oil tanker to Venezuela as part of ongoing efforts to deal with Venezuela-linked tankers. According to two anonymous U.S. officials speaking to Reuters, the Panama-flagged supertanker, M/T Sophia, was handed back to Venezuelan authorities without further explanation.

The tanker, initially intercepted by the U.S. Coast Guard and military forces in early January, was described as part of a 'stateless, sanctioned dark fleet motor tanker'. Questions remain about the tanker's cargo status, as officials did not disclose whether it still carried oil at the time of its return. Both the U.S. and Venezuelan authorities have yet to comment publicly on the transfer.

Amid increasing sanctions on Venezuelan oil shipping, many aging vessels, including those seized, pose environmental and safety risks due to inadequate safety certifications and insurance. As part of a long-term strategy to control Venezuela's oil resources, the U.S. plans significant investment to revitalize the industry. Meanwhile, Dubai-based company GMS has applied for a U.S. license to scrap ships linked to Venezuelan oil trade.