General – Venezuela
Reuters reports that Venezuela’s state-run oil company PDVSA has begun cutting crude production because it is running out of storage capacity.
This is result of an ongoing U.S. oil blockade that has reduced exports to zero, piling more pressure on an interim government trying to hang on to power in the face of U.S. threats of more military action.
Caracas is in a political crisis under an interim government after President Nicolas Maduro and his wife were captured by U.S. forces on Saturday. The OPEC country’s oil exports, its main source of revenue, are now at a standstill following a U.S. blockade on tankers under sanctions and the seizure of two oil cargoes last month.
Chevron’s cargoes bound for the U.S. had been an exception, continuing to move, because the company has a license from Washington for its operations. But even those have stopped since Thursday, shipping data showed on Sunday.
PDVSA’s move includes shutting down oilfields or well clusters as onshore stocks mount and the company runs out of diluents to blend Venezuela’s heavy crude for shipment.
The company requested output reductions for joint ventures, including China National Petroleum Corporation’s (CNPC) Petrolera Sinovensa, Chevron’s Petropiar and Petroboscan, and Petromonagas.
Petromangas, previously operated by PDVSA and Russian state-run Roszarubezhneft, is being run solely by PDVSA.
