Venezuela’s state-run PDVSA is preparing to recover a portion of the oil output lost in recent months by boosting crude blending operations at its main producing region, the Orinoco Belt, according to sources and a company document.
US sanctions imposed since 2019 have deprived PDVSA of the diluents it imports to produce exportable crude grades. The sanctions have cut off its customer base and the number of tanker owners willing to work with the firm, causing oil exports to fall to their lowest levels since the 1940s and cutting heavily into PDVSA’s production.
PDVSA and its joint ventures produced 336,000 bpd of crude at the end of August, internal figures from the company showed. Just a year earlier the nation’s output was 933,000 bpd, according to figures reported to OPEC. Venezuela’s oil exports are the nation’s largest source of foreign revenue.
Two weeks ago, PDVSA restarted blending operations at the joint venture Petrosinovensa, which it shares with China National Petroleum Corp, after months of paralysis. It is now processing 64,500 barrels per day of diluted crude oil (DCO) to produce about 77,000 bpd of exportable Merey crude, according to the document.
On Sunday, PDVSA finished discharging a 500,000-barrel parcel of Iranian condensate for another joint venture, Petropiar, operated with US-based Chevron Corp, aiming to boost blending operations there, the document also showed.