Venezuela reveals plan to maintain oil production without Chevron
According to internal documents obtained from Venezuela’s state oil company PDVSA, the firm has developed three operational scenarios to sustain oil production after Chevron’s license expires in April.
The Venezuelan oil giant aims to continue producing between 105,000 and 138,000 barrels per day of Hamaca heavy crude at the Petropiar project. PDVSA plans to split crude output between domestic refineries and export markets outside the United States, News.Az reports citing foreign media.
The company will process some vacuum gasoil byproducts to produce low-octane gasoline for domestic consumption. This strategy aims to minimize disruption from the departure of the American oil major.
The state-owned company faces several technical challenges in maintaining operations. PDVSA will recycle a larger portion of imported naphtha and supply additional diluents from its Paraguaná refining complex.
These measures seek to prevent shortages of essential materials needed for heavy oil production. Chevron currently contributes approximately $200 million monthly to Venezuela’s economy through its operations.
The American company handles about 25% of Venezuela’s oil production through various joint ventures with PDVSA. Analysts expect Venezuela’s total oil output to drop from 900,000 to 700,000 barrels per day after Chevron’s departure.
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