By Marianna Parraga
Feb 9 (Reuters) – Venezuela’s state oil company PDVSA has reversed most output cuts at its own oilfields and joint ventures in the Orinoco Belt, the country’s main crude region, boosting total output close to 1 million barrels per day (bpd), sources close to operations said.
OPEC member Venezuela had to reduce crude output after an oil blockade imposed by Washington in December to pressure Nicolas Maduro, whose capture in early January led to the U.S.-overseen government of interim President Delcy Rodriguez.
The strict U.S. blockade left millions of barrels of exportable crude stuck at onshore tanks and vessels in Venezuela, forcing output cuts that PDVSA has recently begun to reverse as exports bounce close to normal levels.
The Orinoco region is now producing slightly over 500,000 bpd after increases over the weekend at several projects, the sources said, more than 100,000 bpd above early January.
“We began increasing output at Petromonagas between Saturday and Sunday, with the additional barrels set to reach 85,000 bpd today,” said a worker from one of five PDVSA-controlled joint ventures in the vast Orinoco Belt.
Venezuela’s overall oil production had fallen to as low as 880,000 bpd in early January, with the Orinoco contributing only 410,000 bpd, from 1.16 million bpd in late November, figures by independent analysts showed.
Trading houses Trafigura and Vitol were granted initial U.S. licenses last month to export and market millions of barrels of Venezuelan oil as part of a $2 billion supply deal between Caracas and Washington.
Oil exports are the country’s main source of revenue. Since the agreement, sale proceeds are going to a U.S.-controlled fund in Qatar, U.S. and Venezuelan officials have said.
The U.S. Treasury Department has also issued general licenses in recent weeks broadly allowing U.S. companies to export Venezuela’s oil and provide it with fuel. These are expected to be followed by other authorizations for exploring and producing oil in the country, separate sources have said.
The U.S. licenses have helped untangle exports, freeing crude and fuel that were in inventory, providing much needed diluents for Venezuela’s extra heavy oil and allowing PDVSA to up output, particularly at the Orinoco Belt, the sources said.
U.S. Energy Secretary Chris Wright plans to visit Caracas this week, where he will have meetings with Venezuelan officials about Washington’s $100 billion reconstruction plan for the country after Maduro’s capture, sources said.
(Reporting by Reuters Staff and Marianna Parraga; Editing by Nathan Crooks, Julia Symmes Cobb, Nick Zieminski and Alexander Smith)
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