British Insured Tankers Caught in Venezuela Oil Sanctions Dispute

Three oil tankers insured by a leading British syndicate are at the centre of a developing diplomatic confrontation after they were observed transporting oil from the Venezuelan port of Puerto José. The vessels, named Kelly, Rene, and Marbella, have reportedly collected crude shipments despite stringent US sanctions prohibiting such activities.

These tankers are covered by the West of England P&I Club, a prominent British maritime insurer. Surveillance data compiled by TankerTrackers, a firm specialising in monitoring global oil movements, indicates that the three ships repeatedly loaded oil from Venezuela over the past year, with their transponders either deactivated or transmitting misleading locations on no fewer than 180 occasions.

The insurance of vessels operating in breach of US sanctions has increased the prospect of a rift between the United Kingdom and the United States. President Donald Trump has heightened military pressure in the region, leading to a notable intervention last week when US forces boarded the supertanker Skipper for a similar Venezuelan shipment. This action came as President Trump escalated sanctions and ordered a blockade of all tankers entering or leaving Venezuela, threatening to designate the Maduro government as a terrorist organisation.

Official guidance from the West of England Club affirms that insurance cover is automatically void if any activity breaches US sanctions. The syndicate insists it does not provide coverage for sanctioned trades and reminds members that trade with Venezuela is not absolutely prohibited unless US interests are involved, though significant caution is necessary due to the far-reaching nature of the American restrictions. British sanctions on Venezuela exist, but remain less comprehensive compared to the US, mainly targeting democratic processes and human rights rather than the entire energy sector.

Among the notable incidents, Kelly took on Venezuelan oil just three days after the Skipper was boarded by US authorities. Additionally, Kelly was traced undertaking a ship-to-ship transfer with the tanker Atila, which had been subject to US sanctions over connections to Iranian interests. The activities of these tankers highlight both the complexity of global shipping compliance and the increasing scrutiny British maritime companies face in navigating overlapping international sanctions regimes.