The Venezuelan state-owned oil company, PDVSA, held a “successful” meeting with American oil giant, Chevron, to strengthen their joint oil production. The Venezuelan Minister of Petroleum and President of PDVSA, Rafael Tellechea, shared images of the meeting on Twitter but did not offer any further details. In December 2022, PDVSA signed contracts with Chevron to continue oil production, despite economic sanctions that have impacted the “powerful industry” of the state-owned company. The Caribbean nation’s crude production has recently risen to 810,000 barrels per day. Chevron is part of four joint ventures in Venezuela, which includes the exploration and exploitation of the Orinoco Oil Belt, home to the country’s largest proven oil reserves.
Last week, PDVSA and Chevron conducted a “work session” to increase joint oil production. Rafael Tellechea said it was a “successful” day with Chevron Venezuela’s team, led by Javier La Rosa. Although no further details were given, these talks come as PDVSA looks to move beyond economic sanctions and furthermore improve oil production. Chevron forms part of a “strategic partnership” with PDVSA in Venezuela, which includes four joint ventures in the exploration and exploitation of oil reserves.
The United States government authorized Chevron to resume limited operations for the extraction of natural resources in Venezuela in November 2022. This was a result of the resumption, after a year of suspension, of dialogue between the Executive of President Nicolás Maduro and the opposition in Mexico. Despite the agreements, economic sanctions remain in place that have affected PDVSA’s “powerful industry”. PDVSA has claimed that these sanctions have restricted their legitimate right to explore, exploit, refine, and commercialize crude oil and its derivatives.
Recently, the Caribbean nation’s crude oil production increased by 7.4%. In April, the country produced 810,000 barrels per day, compared to 754,000 barrels per day in March. This increase in production may also be a result of PDVSA’s partnership with Chevron.
In conclusion, the recent work session between PDVSA and Chevron aims to strengthen the joint oil production in Venezuela. Despite the agreements, the economic sanctions impacting the state-owned company’s industry have been a concern. However, the recent increase in oil production may be a positive signal for the future.