LATAM
México

Guyana

Trinidad
& Tobago




Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

Chevron's Venezuela Petropiar oil venture hit hard by outages

Panorama

Petropiar Chevron's upgrader facility in Jose, Venezuela biggest Venezuela oil venture.

- Production dropped to zero for two straight days in March
- Output remains about 44 percent below January levels

By Fabiola Zerpa / Bloomberg

HOUSTON
Petroleumworld 04 25 2019

Chevron Corp. 's largest producing joint venture with Venezuela is still struggling to resume normal operations after rolling blackouts temporarily knocked oil output to zero.

Production at Petropiar, an oil upgrader jointly owned by Chevron and state-owned Petroleos de Venezuela SA, fell by half from February to March as the government rationed electricity in the Orinoco Belt, according to data compiled by Bloomberg from company sources. During the first two weeks of April, production averaged 74,000 barrels a day, about 44 percent below the same period in January.

Petropiar's slump highlights the plight of Venezuela's other joint ventures with international oil companies, which have taken a hit in recent months as U.S. sanctions fuel brain drain and nationwide power outages shut in oil fields. PDVSA partnerships -- with Total SA and Equinor ASA on the Petrocedeno upgrader, with CNPC on the Sinovensa project, and with Rosneft Oil Co. PJSC on the Petromonagas upgrader -- have yet to resume full production more than six weeks after the blackouts began.

Overall, production in Venezuela has hit a 16-year low , slumping to 732,000 barrels a day in March, and could fall even further.

“We estimate a loss of 400,000 barrels due to the economic and electricity crisis,” said Reinaldo Quintero, president of the Venezuelan Oil Chamber.

PDVSA's joint effort with Chevron, the only American refiner doing business in Venezuela amid U.S. sanctions, has typically been one of the country's biggest producers, with a daily capacity of 190,000 barrels. In January, Petropiar pumped an average 132,000 barrels a day. After the first power outage on March 7, production dropped to zero for two consecutive days.

READ ALSO: Venezuela's oil producion in a nosedive, PDVSA imports crude

Bloomberg

Petropiar facility in El Tigre, Venezuela.

March saw four major power disruptions that affected output, followed by two more in April . Since then, production has clawed back somewhat, reaching 92,000 barrels on April 16, but remains well below historic averages.

Chevron referred to questions to PDVSA, the operator of Petropiar, which declined to comment.

Petropiar's oil fields rely on power from the Guri hydroelectric plant, located 240 kilometers (149 miles) to the south. The company's extraction pumps need less power than its upgrader, the second-largest in Venezuela, which mixes the tar-like crude oil it extracts from the Orinoco belt, located way up north to the Caribbean shore.

Even so, electricity has been rationed at both oil fields and upgraders since the blackouts, causing operational issues and damage . But Venezuela's power crisis is just one obstacle producers are facing.

RELATED: Venezuela Oil Output Is Said to Plunge by Half During Blackouts

"The electricity problem for PDVSA is in addition to two previous problems the government needs to deal with: sanctions and lack of investment, which are at the base of Venezuela's falling production numbers," said Francisco Monaldi, an energy expert at Rice University.


________________________


We invite you to join us as a sponsor.

Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.

________________________

 

Story by Fabiola Zerpa from Bloomberg.

bloomberg.com/ 04 23 2019

 

Copyright© 1999-2019 Petroleumworld or respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions Petroleumworld.com as the source.

Other stories you have to get authorization by its authors. Internet web links to http://www.petroleumworld.com are appreciated.

Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!

We invite all our readers to share with us
their views and comments about this article.

Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1


 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher: Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2019, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2019, Petroleumworld ™  / Elio Ohep - All rights reserved

 

 

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.