• 3 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 7 minutes Middle East on brink: Oil tankers attacked off Oman
  • 11 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 15 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 3 hours The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 1 hour Buy IELTS, IDP TOEFL, GMAT, ESOL, DEGREE, DIPLOMAS WhatsApp............+237(683)(483)(021)
  • 3 hours Greenpeace claims one oil rig is "pushing the world closer to a climate catastrophe"
  • 2 hours Hydrogen FTW... Some Day
  • 2 mins Fareed Zakaria: Canary in the Coal Mine (U.S. Dollar Hegemony)
  • 17 hours The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
  • 16 hours Emmissions up, renewables nowhere
  • 1 day Plants are Dying
  • 2 days Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 2 days We Are Better Than This
  • 8 hours Britain makes it almost 12 days with NO COAL
  • 8 mins The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 1 day Russia removes special military forces from Venezuela . . . . Maduro gone by September ? . . . Oil starts to flow ? Think so . .
The Success Story Behind Tesla’s Tarnished Image

The Success Story Behind Tesla’s Tarnished Image

following a year of less-than-pleasing…

OPEC’s No.2 Steps In To Replace Lost Iranian Oil

OPEC’s No.2 Steps In To Replace Lost Iranian Oil

Iraq, OPEC’s no.2 oil producer…

PDVSA Asks JV Partners To Strengthen Commitments On Oil Projects

PDVSA

Venezuela’s troubled state oil company PDVSA is pressuring its joint venture partners to strengthen their commitment to their joint projects, Reuters reports, citing unnamed sources.

The company has insisted that its partners from Europe and the United States publicly declare whether they will continue participating in the joint ventures amid more U.S. sanctions. This participation has become uncertain as the latest round of sanctions has made it more difficult for PDVSA’s partners to transfer cash out of Venezuela and also to market the oil the joint ventures produce.

PDVSA’s partners in the Orinoco Belt, where most of its heavy crude reserves are concentrated, include Total, Equinor, Rosneft, and Chevron, as well as China’s CNPC. Earlier this year, PDVSA also struck two new production deals, one with a U.S. company and one with a French one, to help reverse a consistent and growing decline in production.

The terms of the joint ventures are changing, however. A Reuters report from earlier this month said PDVSA had begun mixing its extra heavy crude with locally produced light oil as imported diluents from the United States are now hard to come by. Normally, according to Reuters, the joint venture partners would market their production separately, but now the mixed crude was being delivered to PDVSA for exports as a way around U.S. sanctions.

The four joint ventures between PDVSA and Total, Equinor, Rosneft, and Chevron operate four heavy crude upgraders that have a total capacity of 700,000 bpd. This is more than two-thirds of Venezuela’s oil production, which is currently around 1.1 million bpd but could drop to about 900,000 bpd if no action is taken to stop the decline, a Wood Mac analyst warned recently.

The companies are very likely—and understandably--reluctant to make a commitment in such a complex situation. Total, however, has already said it could continue working in Venezuela, even though the French company evacuated its foreign workers and has complained about its bank accounts getting blocked.

By Irina Slav 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