Chevron cuts 2023 Venezuela oil outlook

Market: Crude oil
30/05/23

US oil major Chevron is lowering its estimated year-end oil production target in Venezuela from 200,000 b/d to 175,000 b/d, according to sources familiar with operations, citing severe problems with oil-transportation infrastructure in western Venezuela.

The general state of disrepair in the Lake Maracaibo navigation channel in Zulia state, which limits the size of oil tankers Chevron can use to ship oil out, remains a major concern, according to the sources. The poor condition of oil storage facilities in Zulia are also a factor.

General disrepair of Venezuela's energy infrastructure was expected to be a limit on any plans to increase production following the US easing some sanctions on Chevron's Venezuela operations last year. Chevron is currently producing around 120,000 b/d from its four Venezuelan projects.

Chevron declined to comment on details of its Venezuelan operations.

The downward revision followed a meeting Monday between Chevron's top in-country representative, Javier La Rosa, and oil minister/president of state-owned PdV Pedro Tellechea.

Venezuela claims the country as a whole is producing more than 800,000 b/d and plans to reach 1mn b/d come August, but many observers call those figures unrealistic. Argus estimates Venezuela's April production at around 750,000 b/d.

By Carlos Camacho

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