Venezuela's state-owned PdV is increasingly reliant on blendstocks to shore up its production of 16°API Merey, an export blend derived from the Orinoco extra-heavy oil belt.
One key input is condensate, which allows PdV to divert more of its limited light grades — 42°API Santa Barbara and 30°API Mesa — to its halting refinery operations rather than for blending. PdV sources about 10,000 b/d of 52°API condensate from the Cardon 4 offshore natural gas venture owned by Spain's Repsol and Italy's Eni and another 20,000 b/d of 45°API condensate from its once-thriving Furrial and Punta de Mata areas in Monagas state, a senior PdV upstream official in Caracas told Argus.
Cardon 4, a 50:50 joint venture between the two EU oil companies that operates the 350mn cf/d shallow-water Perla field, is the only 100pc private-sector hydrocarbons venture in Venezuela. While PdV is mandated by Venezuelan law to control oil joint ventures, it has no required role in gas ventures. The field's associated liquids, considered a legal gray area, are now critical to PdV's blending of 8°-10°API Orinoco crude to make Merey, the grade favored by Chinese refiners.
PdV loads up to 200,000 bl of Perla condensate per voyage from the 305,000 b/d Cardon refinery terminal to the Jose complex in Anzoategui state, where its Orinoco blending operations are located.
Repsol did not respond to requests for comment on Cardon 4 condensate. Eni declined to comment.
"It's only about 30,000 b/d of condensate, but the 45-52°API grades mean we can produce more Merey with less light crude," a PdV Orinoco division official told Argus.
PdV is also relying on naphtha produced at the partially operational 940,000 b/d CRP refining complex on Paraguana and the 190,000 b/d Puerto La Cruz refinery in Anzoategui as diluent to produce and transport the Orinoco crude. The company used to source naphtha from US refiners before the US imposed oil sanctions on Venezuela in January 2019.
The condensate, naphtha and light cracked product from Cardon's fluid catalytic cracker total around 60,000-70,000 b/d of diluent and blendstock that has enabled PdV to boost the Orinoco division's total crude output to around 345,000 b/d, according to daily operational reports obtained by Argus.
The condensate in particular has freed up the light grades for its newly restarted Puerto La Cruz refinery that currently is processing about 80,000 b/d at one distillation unit, yielding some diesel for the local transportation and electricity market, and naphtha.
The blendstocks go mainly to a handful of PdV's Orinoco joint ventures, including PetroMonagas in which PdV is partnered with Russian state investors, and the PetroIndependencia and PetroPiar ventures in which Chevron holds minority stakes.
PetroPiar had been producing around 80,000 b/d before a gas flow line blast yesterday downed operations.
Most of PdV's bitumen-rich Merey is exported via intermediaries to China, although Beijing's new taxes on blendstock could narrow Venezuela's oil export options starting in mid-June.
