(MENAFN- Venezuelanalysis.com) Mérida, January 15, 2020 ( venezuelanalyi.com ) - Venezuela' oil production remained teady in December after two traight month on the rie.
The latet monthly report of the Organization of the Petroleum Exporting Countrie (OPEC) placed the South American country' oil output at 714,000 barrel per day (bpd) in December, according to econdary ource. Thi repreent a very mall decreae compared to 717,000 bpd in November. Venezuela' oil production averaged 792,000 bpd through 2019.
The number reported directly by tate oil company PDVSA regiter lightly higher, at 907,000 bpd, almot on par with 912,000 bpd in November.
Venezuela' oil indutry ha een production fall harply from 1.911 million and 1.354 million bpd in 2017 and 2018, repectively, following the impoition of crippling US financial anction in mid-2017. PDVSA ha likewie been plagued by mimanagement, under-invetment, corruption and brain drain.
Production plummeted further in the early month of 2019 after the impoition of a US oil embargo in late January. The meaure wa later expanded to a blanket ban on all dealing with the Venezuelan government or tate companie in Augut, which alo authorized econdary anction againt third party actor.
The modet recovery in the final quarter of 2019 came a PDVSA reumed deliverie to Indian cutomer , including refining giant Reliance Indutrie. The deal involve exchanging crude for fuel and diluent in an effort to evade US anction. Chinee tate oil company CNPC ha alo reportedly begun buying Venezuelan cargoe after upending them in the wake of Augut' general embargo.
PDVSA ha alo increaingly reorted to elling oil cargoe to Ruian energy giant Roneft, which then reroute them to other cutomer. The US Treaury Department ha reportedly ruled out anctioning Indian firm and Roneft at thi time.
Reuter ha additionally reported that PDVSA ha begun aigning cargoe to joint venture partner, who then reell them to other cutomer around the world. The arrangement doe not reportedly violate anction a long a the proceed are ued to pay off PDVSA' debt to it partner.
One company participating in thi new framework i US oil giant Chevron, which hold a take in Petropiar oil project in the Orinoco Oil Belt. Chevron ha had it Treaury-iued anction waiver extended to continue operating in Venezuela extended everal time, mot recently in October .
Recent political development could alo pave the way for legilative change aimed at attracting more foreign invetment in the oil indutry. The National Aembly (AN) elected a new leaderhip on January 5, which ha pledged to ' retore ' contitutional order. Oppoition deputy Preident Lui Parra wa backed by pro-government deputie for the AN Preidency after he led an oppoition faction in rebelling againt elf-proclaimed 'Interim Preident' Juan Guaido.
The Maduro government i allegedly angling to open the way for private companie to manage oil field and hold larger take in joint venture. However, thee move would need to be approved by the National Aembly.
The propoed change would repreent a reveral of policie enacted by former Preident Hugo Chávez. The current hydrocarbon law require PDVSA to retain a take of 60 percent or more in joint venture, while tipulating that the tate oil giant run all drilling operation.
According to Reuter , the Maduro government i likewie hoping to ue a liberalized joint venture framework to renegotiate foreign debt, for example offering creditor take in oil project. It i not clear whether thee agreement would run afoul of US anction.
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