Venezuela’s oil woes deepen as Chinese contractor halts work

A Chinese oil contractor halted work on an expansion project in Venezuela. Venezuelan President Nicolas Maduro says an investigation will begin immediately regarding an explosion. Venezuela’s oil output continued its downward trend in July. It underscoring the difficulties for the Nicolas Maduro regime even at energy ventures backed by allies. One of Venezuela’s extra-heavy crude upgrader has started working.

An affiliate of government-run China National Petroleum Corporation. The Venezuelan government has announced the expansion of Chinese investment in the country’s oil industry. Venezuela’s oil production has remained steady for the third straight month. It has suspended work to expand a crude blending facility by 57% to 165,000 bpd. Venezuela is now experiencing an extensive blackout. The Organisation of Petroleum Exporting Countries (OPEC) blasted US-led sanctions against Venezuela’s oil industry.

It’s according to a document seen by Bloomberg and a person familiar with the matter. Venezuela’s oil exports reportedly fell by 17 percent in May. Oil Minister and PDVSA President Manuel Quevedo tweeted regarding this. The figures announced by the Organisation of Oil Producing Countries (OPEC). That’s in contrast to comments from state-controlled Petroleos de Venezuela SA last month announcing a second expansion.

It based on secondary sources represent a 4 percent decrease from the 774,000 bpd. A representative at the press office of CNPC didn’t answer two calls, or immediately reply. The investment, which authorities say is worth US $3 billion. The halt is another blow for Venezuela, which is increasingly reliant on Russian. Electrical power went out around 4:40 pm on last Monday. Chinese oil companies to prop up an industry struggling.

The oil cartel’s monthly report placed the country’s June oil output at 734 thousand barrels. OPEC and Venezuela’s state-run oil company PDVSA. The “Jose” plant is located in Barcelona, Anzoátegui State. It began to slowly return to some parts of the country, including most of Caracas. Mohammed Barkindo explained that “For us in OPEC, the sanctions imposed. Output has stagnated between 700 and 800,000 bpd since March.

It against an economic blockade by Donald Trump’s administration. Petropiar facilities in Anzoategui State are part-owned by US oil giant Chevron. The numbers reported directly by state oil company PDVSA were 1,050 bpd. Chevron Corp. and four U.S. oilfield service companies will stop work in the Latin American nation at the end of October. Barkindo likewise endorsed a diplomatic solution towards ending the sanctions.

OPEC and oil producing non-OPEC members, grouped into the OPEC+. a government communique stated that the probable cause was an electromagnetic attack. It potentially affecting nearly half the drilling rigs operating in the country. The OPEC figures seem to contradict unofficial numbers quoted by Reuters. The government attributed the previous two national blackouts on August.

It also agreed to extend production caps at their meeting in Vienna, Austria. A project manager at HQC said in a notification to Sinovensa it was owed more than $52 million. The facility will blend extra-heavy grades from Venezuela’s Orinoco Oil Belt. It indicated oil exports jumping from 874,000 bpd to 1.1 million bpd. Caps have seen some oil prices rise by as much as 25 percent this year.

PDVSA struggled to find new buyers and has been working to convert its crude upgraders. Venezuela’s oil production fell by 30 percent. Venezuela, Libya and Iran are, however, exempt from these restrictions. It’s quoting documents from state oil company PDVSA. In invoices dating back to 2018, and that it was suspending activities from Sept 3. The authors warn that the decline in oil production caused by sanctions.

The Venezuelan oil industry is responsible for over 90 percent of the country’s foreign currency income. Sales to India reportedly plummeted by one third in May. Sinovensa currently produces 110,000 barrels per day (bpd). The JV is a key project in Venezuela’s Orinoco region that boasts the largest oil reserves. Caracas has scrambled to find new buyers in response to Washington’s oil embargo.

PDVSA has three more upgraders in the Jose Antonio Anzoategui industrial complex. The stagnant oil figures coincide with reports that June was the fourth consecutive month. Weisbrot and Sachs stress that sanctions are illegal under the Organization of American States. Financial sanctions against PDVSA in August 2017 resulted in an estimated $6 billion. Some reports point to the blackout affecting 15 of Venezuela’s 23 states.

The Venezuelanalysis writing team, based in Venezuela. The total accumulated inflation over the past 12 months now sits at 445,000 percent. The sanctions also violate US law. The measures were escalated to an embargo in August which blocked all sales of Venezuelan. The second stage of the project is expected to increase the figure to 230,000 bpd. The planet and currently accounts for about half of the country’s remaining production.

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