Chevron Ramps Up Venezuelan Oil Exports Amid US-Venezuela Reset
Chevron Corp. plans to increase its oil exports from Venezuela to their highest level in seven years, buoyed by an easing of tensions between the two countries.
Exports from Chevron's Petropiar synthetic oil project are expected to jump by about 50% this month to approximately 143,000 barrels per day, the highest since March 2018. The project's output has seen a 37% increase in the past year, reaching 110,000 barrels per day in January.
The uptick in exports reflects the slow revival of Venezuela's oil industry, a key revenue generator for the country. President Nicolas Maduro has benefited from the release of US prisoners, acceptance of US-deported immigrants, and a meeting with Trump envoy Richard Grenell, which have eased concerns about additional sanctions.
Chevron's ability to expand in Venezuela remains constrained by sanctions, limiting the company to operating within the boundaries of contracts established in 2019. However, the company has taken steps to enhance operations, including securing reliable electricity supply and replacing essential equipment.
Despite ongoing sanctions, Chevron continues to operate in Venezuela in compliance with applicable regulations. The company has also increased production at its Petroboscan project by 40% in the past year, to 101,000 barrels per day in January. Improvements in electricity and gas supply have helped mitigate production disruptions experienced in previous years.