PDVSA will take over Chevron’s oil production operations in Venezuela following the revocation of Chevron’s operational license by the Trump Administration. The U.S. Treasury has allocated thirty days for Chevron to conclude its operations. PDVSA plans to produce between 105,000 and 138,000 barrels per day at its Petropiar site and will export crude to markets outside the U.S.
The Venezuelan state oil firm, PDVSA, has announced that it will assume sole control of crude production from its joint ventures with Chevron, following the Trump Administration’s decision to revoke the U.S. company’s operating license in Venezuela. This transition comes after President Trump cited concerns regarding electoral reform and migration issues in Venezuela as reasons for the changes implemented on Chevron’s operations.
The U.S. Treasury has provided Chevron with a thirty-day period to conclude its operations and exports from Venezuela by April 3. Previously, Chevron had been exporting approximately 200,000 barrels per day of heavy crude to the U.S. under a sanctions waiver that has now been eliminated, effectively terminating the company’s involvement in Venezuela.
In preparation for this takeover, PDVSA has developed three operational scenarios, projecting crude production levels ranging from 105,000 to 138,000 barrels per day at the Petropiar site. Part of this Hamaca crude is designated for domestic refining, while the remaining volume will be exported to markets outside the United States. PDVSA aims to stabilize production at Petropiar to avoid significant disruptions, such as shutting down the heavy crude upgrader or oilfields.
In conclusion, PDVSA’s assumption of Chevron’s operations marks a significant shift in Venezuela’s oil production landscape. With the cessation of Chevron’s activities, PDVSA is poised to sustain its production levels while refocusing its export strategies away from the U.S. market. This development underscores the ongoing complexities in geopolitics and energy production in Venezuela.
Original Source: oilprice.com
