Venezuela's state-owned oil company has commenced the process of reopening certain oil wells that were previously shuttered due to stringent U.S. sanctions, according to sources. These wells include those operated independently by the company and others managed in partnership with joint venture allies, with crude exports also resuming, evidenced by two shipments that set sail on Monday.
Since December of last year, Venezuela's crude exports had nearly ground to a halt, with only U.S.-based Chevron Corporation receiving authorization from Washington to export crude from its joint ventures. This situation led to millions of barrels of oil being stranded in onshore storage tanks and aboard idle vessels.
Independent data indicates that the nation's overall crude production declined to approximately 880,000 barrels per day (bpd) last week, a significant drop from the 1.16 million bpd recorded in late November. Production in the key Orinoco heavy oil belt was particularly hard hit, falling sharply to around 410,000 bpd, compared to 675,000 bpd at the end of November.
However, in a development that could alleviate export pressures, two supertankers, each laden with roughly 1.8 million barrels of crude, departed Venezuelan waters on Monday evening. These shipments are likely the initial deliveries under a supply agreement for 50 million barrels of oil negotiated between Caracas and Washington.
Ship-tracking data from the London Stock Exchange Group (LSEG) showed that the two tankers were heading north from the Venezuelan coast into the Caribbean Sea on Tuesday. This area is a hub where numerous oil companies, including traders, producers, and refiners, lease storage tanks.
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