Media: Venezuela cuts oil production as US blockade tightens

Venezuela has begun shutting oil wells in the Orinoco Belt, the region containing the world’s largest deposits of crude, as the country faces a tightening blockade imposed by the United States, Bloomberg reports.

State-owned Petroleos de Venezuela SA (PDVSA) started the process on December 28, with plans to reduce output in the Orinoco Belt by at least 25%, equivalent to 500,000 barrels per day. The cut represents roughly 15% of Venezuela’s total daily production of 1.1 million barrels.

The move comes after PDVSA ran out of storage space and inventories swelled, according to sources familiar with the company’s internal plans. Shutting wells is considered a last resort due to the operational difficulties and high costs associated with restarting production.

The reduction will begin in the Junin area, which produces the heaviest crude, before extending to other parts of the Orinoco Belt, including Ayacucho and Carabobo, which produce lighter grades of oil.

The decision marks a major challenge for President Nicolas Maduro, who has sought to maintain oil exports despite US sanctions and a military blockade ordered by President Donald Trump this month, citing the need to curb drug trafficking.

China remains Venezuela’s main purchaser of crude, providing a critical market amid growing international pressure. PDVSA and Venezuelan government officials have not commented publicly on the production cuts.

By Aghakazim Guliyev