Oil production in Venezuela

The main articles are:

• Economy of Venezuela
• Oil and gas production

Largest confirmed oil reserves

Companies

• Petroleos de Venezuela (PDVSA)

History

2024: US renews sanctions on Venezuela's oil and gas sector

The effect of US sanctions against Venezuela in the oil and gas and gold mining sectors will resume from April 18, 2024, the US State Department said in January 2024.

The action of the general license issued by the US Treasury, allowing transactions in the oil and gas sector of Venezuela, "will not be extended after its expiration date on April 18, 2024." In addition, the United States revokes the general license allowing transactions with the Venezuelan state-owned company Minerven, which is engaged in gold mining.

During the temporary lifting of US sanctions, the price rose and oil supplies from Venezuela to China decreased

2023

Half of Guyana declared 24th state of Venezuela due to plans of US companies to extract oil there

In October 2023, the oil company Chevron entered into an agreement to acquire all shares of Hess Corporation for $60 billion. Thus, Chevron gained access to the largest oil fields in Guyana, which is already called one of the "most promising assets" in the company's portfolio.

In Guyana, Exxon is already operating, which at the end of October made a "significant discovery of oil and gas" on the Stabrook block. Up to 1.2 million barrels per day are expected to be produced there by 2027.

At the same time, there is an increased diplomatic activity of the Guyana authorities in relation to the disputed territories with Venezuela. The appeal to the UN about holding a referendum in the disputed territories looks like protecting the national interests of Guyana, but in reality it is about the interests of TNKs, which need access to the fields located there.

The long-term territorial dispute between the two countries over the ownership of a territory of 159.5 thousand square meters. km west of the Essequibo River, called "Guyana-Essequibo," claimed by Venezuela, escalated due to the provision of oil concessions by Guyana to ExxonMobil. The maritime boundaries of this area have not yet been determined. In addition, the United States plans to deploy a military base on the disputed territory to protect the assets of American companies. In the future, it can be used to put pressure on the Venezuelan government.

On December 3, 2023, the people of Venezuela voted in a referendum to support their country's claim to the oil and mineral rich territory of neighboring Guyana.

The referendum, which Guyana described as a pretext for "annexation," marks a new stage in the dispute over the Essequibo region, which escalated after ExxonMobil discovered oil in the Stabroek block off its coast in 2015.

On December 6, 2023, Venezuelan President Nicolas Maduro declared the western part of Guyana - Essequibo - the 24th state of the country. He proposed to create units of departments on the annexed territory that issue licenses for the production of gas, oil and minerals.

Reduction of some sanctions on oil production by the United States

After the reduction in oil production by Russia and Saudi Arabia, the United States suspended some sanctions on the Venezuelan oil and gas and gold mining sectors.

Oil production in Venezuela will increase by 25% after the easing of sanctions. According to manufacturers, production may increase by 200 thousand barrels per day.

Questions remain about how quickly oil will enter the market. The Merey variety prefers to process Chinese "kettles."

US bans oil and gas buyers from paying Venezuela money

Venezuelan President Nicolas Maduro in February 2023 criticized the US licenses issued to companies doing business with Venezuelan state-owned companies under sanctions.

Washington in 2022 allowed American and European firms to resume accepting Venezuelan crude oil, provided that they did not pay Venezuela money. At the end of January 2023, the United States allowed Trinidad and Tobago to import gas from a Venezuelan offshore field and banned the transfer of cash to the Venezuelan government.

"They tell the country it has permission to cooperate with Venezuela, but the company cannot pay in dollars or any other form of cash. The company must pay with food or other products, "Maduro said on air and called the approach" colonialism. "

Chevron sent the first ships with oil produced in Venezuela to the United States

Chevron in January 2023 sent the first ships with oil produced in Venezuela to the United States.

2022

US authorities allow American Chevron to resume supplies of oil and oil products from Venezuela

In November 2022, the US authorities allowed the American company Chevron to resume deliveries of oil and oil products from Venezuela. The decision was made against the background of the conflict in Ukraine and attempts to reduce oil exports and Russia.

China gets oil from Venezuela despite US sanctions

In August 2022 Reuters , he learned about the shipment PEOPLE'S REPUBLIC OF CHINA oilVenezuela against the debt of the times of President Chavez., China despite the sanctions, USA receives oil from Venezuela. We are talking about 13 batches of Venezuelan raw materials worth about $1.5 billion, the country of origin of oil is not officially indicated.

2021

Oil production in thousands of barrels per day by country in 2021

2020: Production crashing to 1945 levels due to US sanctions

By June 2020, oil production in Venezuela due to US sanctions fell to the level of 1945, according to a report by the Venezuelan oil state-owned company PDVSA.

The company reduced production estimates to 374 thousand barrels. per day. The decline in production, according to Bloomberg, is the result of US sanctions that scared most of the world's buyers of Venezuelan oil, which led to an excess of raw materials in storage facilities and a maximum reduction in production.