PDVSA will independently produce crude from its joint ventures with Chevron after the U.S. revoked Chevron’s operational license. The Venezuelan company plans to maintain production levels and explore non-U.S. export markets while ensuring continuous operation at the Petropiar site.

Petroleos de Venezuela, S.A. (PDVSA), Venezuela’s state oil company, is set to independently manage crude production from its joint ventures with Chevron. This development follows the termination of Chevron’s operational license in Venezuela by the Trump Administration, as reported by Reuters. The decision came amid concerns over electoral reforms and migration issues in the country, prompting President Trump to revoke the waiver that enabled Chevron’s previous operations.

The Trump Administration’s cancellation necessitates Chevron to cease operations and exports from Venezuela by April 3. Previously, Chevron was exporting approximately 200,000 barrels of heavy crude daily to the U.S. under the sanctions waiver implemented in 2022. With the cessation of this waiver, PDVSA is preparing to continue operations without Chevron’s involvement.

PDVSA has outlined three production scenarios for the Petropiar site in the Orinoco Belt, anticipating crude output between 105,000 and 138,000 barrels per day. This estimated production aligns with recent output levels, facilitating the company’s strategy to maintain operational continuity. A portion of the Hamaca heavy crude will be allotted for domestic refining, while the remainder will target markets beyond the U.S.

In addition, PDVSA aims to enhance the supply of diluents necessary for upgrading heavy crude, ensuring smooth pipeline flow. The primary objective is to sustain production at Petropiar to avert the shutdown of the heavy crude upgrader and oilfields, thereby securing operational stability in the medium term.

In summary, PDVSA will take control of operations previously managed by Chevron in Venezuela, following the revocation of Chevron’s operational license by the Trump Administration. PDVSA’s strategy includes targeted production levels at the Petropiar site, with a focus on maintaining consistency and expanding exports to non-U.S. markets. The firm’s proactive measures aim to stabilize Venezuela’s oil production amidst changing operational dynamics.

Original Source: oilprice.com

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