Reuters: Venezuela resumes oil production

Venezuela’s state energy company PDVSA is lifting the oil production cuts that were imposed due to the U.S. embargo.

Oil exports are resuming under Washington’s supervision, Reuters reports, citing sources.

Oil exports from Venezuela “fell to almost zero” after the U.S. imposed a blockade on oil shipments in December. Only the American oil company Chevron continued exporting oil from its joint ventures with PDVSA under a U.S. license.

As a result, millions of barrels of oil “were stuck in onshore storage tanks and on tankers.” As storage facilities filled up, PDVSA was forced to shut wells. The company has now instructed its joint ventures to resume production.

According to consulting firms, Venezuela’s oil output last week fell to 880,000 barrels per day (b/d) from 1.16 million b/d at the end of November. Reuters reports that on the evening of January 13, two supertankers left Venezuelan territorial waters, each carrying 1.8 million barrels of oil. These may be the first shipments under a 50-million-barrel agreement between Caracas and Washington aimed at resuming exports. PDVSA has not yet confirmed the approval of the deal.

By Khagan Isayev