TEHRAN - Venezuela has increased its oil shipments to Asia through intermediaries and growing cargo swaps with Iran in September so that the country’s crude exports have reached their third highest level this year, Reuters reported citing internal documents and tanker tracking data.

As reported, the OPEC-member's oil exports were volatile earlier this year due to a lack of diluents required to produce exportable grades and unstable output amid processing outages and scarce drilling equipment.

But oil production and exports regained their footing in the third quarter, helped by Iran's supplies of condensate and crude to state-run oil company PDVSA, and deliveries of Venezuelan heavy crude and fuel oil to Iranian state companies.

Iran has been swapping Venezuelan heavy oil and other commodities for gasoline, condensate, refinery parts, and technical assistance, while providing the country with lighter oil to be used as diluent.

As its oil output becomes heavier, Venezuela struggles to source medium and light grades for its refineries, contributing to limited production and intermittent scarcity of motor fuels. The South American country also increasingly needs lighter crudes or refined products to turn its extra heavy oil output into exportable grades.

In total, Venezuela has received this year over 24 million barrels of Iranian crude and provided 21 million barrels under the swap agreement that was expanded earlier this year.

The country began shipping in heavy crude oil from Iran to use as feedstock in domestic refineries in May.

Iranian crude, which is similar in quality to Venezuela's Mesa 30 crude, has helped PDVSA boost operations in its main oil-producing region, the Orinoco Belt.

Back in June, Venezuelan President Nicolas Maduro visited Tehran heading a high-ranking politico-economic delegation.

The presidents of Iran and Venezuela formally held talks during that visit in which a 20-year cooperation document was inked between the two sides.

EF/MA