PDVSA will independently produce crude following the U.S. revocation of Chevron’s license. Post-April 3, it plans to produce between 105,000 to 138,000 bpd of Hamaca heavy crude and continue exporting to non-U.S. markets. The company’s strategy aims to sustain production and avoid operational shutdowns.
PDVSA, Venezuela’s state oil firm, will manage crude production independently from its joint ventures with Chevron, following the revocation of Chevron’s operating license by the Trump Administration. This decision, based on political and electoral concerns, has been reported by Reuters, referencing a PDVSA document.
In late February, President Trump rescinded a waiver that permitted Chevron’s operations in Venezuela, a measure that was pivotal for the country’s oil output. Trump cited lack of electoral reforms and migration issues as reasons for the sanction’s reversal. He stated, “We are hereby reversing the concessions… which have not been met by the Maduro regime,” on Truth Social.
The U.S. Treasury subsequently instructed Chevron to cease operations and exports by April 3, resulting in the cessation of Chevron’s crude exports to the U.S., which had been about 200,000 barrels per day (bpd). PDVSA is now strategizing its operations post-Chevron.
PDVSA has outlined three production scenarios for after April 3, indicating intentions to maintain output at the Petropiar site, ranging from 105,000 to 138,000 bpd of Hamaca heavy crude. This production level aligns with recent outputs, with plans to refine and export excess crude to markets outside of the U.S. The company’s strategy also includes increasing diluent supplies necessary for crude transportation.
The primary objective for PDVSA is to sustain production at Petropiar, thereby preventing the shutdown of heavy crude upgraders or oilfields, according to a source familiar with PDVSA’s plans.
In conclusion, the revocation of Chevron’s operating license by the U.S. has compelled PDVSA to take sole control of oil production in Venezuela. The state oil firm aims to maintain production levels and explore international markets for crude exports, while also planning for necessary infrastructure adjustments to ensure operational efficiency. PDVSA’s proactive strategies reflect its commitment to stabilizing production amidst the shifting political landscape.
Original Source: oilprice.com
