• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 11 hours Maybe 8 to 10 "good" years left in oil industry * UAE model for Economic Deversification * Others spent oil billions on funding terrorism, wars, suppressing dissidents * Too late now
  • 1 day Long Range Attack On Saudi Oil Field Ends War On Yemen
  • 3 hours Only thing that moves oil price up is an attack on Tankers or Oil Facilities (Staged or real?)
  • 14 hours In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 2 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 4 hours Russia Accuses U.S. Of Stoking Tensions With Missile Test
  • 7 hours With Global Warming Greenland is Prime Real Estate
  • 7 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 2 hours What to tell my students
  • 17 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 1 day US Petroleum Demand Strongest Since 2007
  • 20 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 11 hours Get First Access To The Oilprice App!

Guaido Set To Open Venezuela’s Oil Sector To Private Firms

Caracas

Juan Guaidó, the Venezuelan opposition leader recognized as the country’s interim president by the U.S. and several major European countries, plans to drop the requirement that Venezuela’s state oil firm PDVSA hold a majority stake in all joint projects, as the leader looks to boost oil production as soon as possible, Guaidó’s envoy to the U.S. has told Bloomberg.

“We want to go to an open economy, we want to increase oil production,” Guaidó’s U.S. envoy Carlos Vecchio said in an interview with Bloomberg.

“The majority of the oil production that we want to increase will be with the private sector,” Vecchio noted.

Under current rules, state firm PDVSA has to hold at least 51 percent in all joint oil projects in the country.

With Nicolas Maduro’s government and PDVSA running out of cash, crude oil production in Venezuela—the country sitting on the world’s largest oil reserves—has been incessantly falling over the past three years, despite Maduro touting deals with Russia and repeatedly vowing to increase oil production.

The economic collapse adds to years of mismanagement and underinvestment in the oil industry to further complicate attempts in Venezuela, one of OPEC’s five founding members, to stop the steep decline of its oil production.

OPEC figures show that Venezuela’s crude oil production dropped by another 33,000 bpd from November to just 1.148 million bpd in December, compared to average 1.911 million bpd for 2017. 

Earlier this month, Wood Mackenzie analyst Ann-Louise Hittle warned that Venezuela’s crude oil production could fall below 1 million bpd after the United States imposed new sanctions on struggling oil firm PDVSA.

“We believe production will likely fall to around 900,000 b/d under pressure from sanctions and a lack of materials for workovers, but we expect waivers will ease the full impact of the sanctions until they expire,” Hittle said.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play