Venezuela boosting oil output and shutting fields
A pump jack at a PDVSA facility in El Tigre, Venezuela.
PDVSA looks to focus efforts on best Orinoco Belt fields
Four fields to start producing DCO, nine others Merey 16
By Fabiola Zerpa / Bloomberg
Petroleumworld 07 02 2019
Venezuela's state-owned oil company is taking an unusual step to try and increase production: shut fields.
Starting in July, Petroleos de Venezuela SA will prioritize 13 fields in the Faja, a 55,000 square-kilometer (21,235 square-mile) strip north of the Orinoco River containing heavy crude oil that former president Hugo Chavez turned into the nation's oil flagship project, according to a document seen by Bloomberg. The other 20 fields -- many producing less than 500 barrels a day -- will be considered inactive, the document showed.
PDVSA is struggling to turn around a slide in Venezuela's oil production that has only steepened after the U.S. imposed sanctions on sales of naphtha, a compound needed to help tar-like crude from the Orinoco Belt move through pipelines. The restructuring follows PDVSA's decision to turn oil upgraders into blending facilities in May. Output has fallen to 741,000 barrels a day, after bring further hobbled in March by a series of blackouts.
“This is an emergency plan as a result of the lack of naphtha and light crude,” said Antero Alvarado, managing partner of consultant Gas Energy Latin America. “This will affect total production output, as some fields will be shut temporarily.”
PDVSA declined to comment.
PDVSA plans to recycle naphtha to get the most use of supplies on hand, as it has struggled to buy more of the product on international markets since the sanctions were imposed. The company will concentrate efforts on the 13 most productive fields at the Orinoco Belt, among them those operated with Russia, China and U.S. partners.
According to the plan, four fields -- three of them operated jointly with international companies -- will start producing Diluted Crude Oil, which is a blend of heavy crude and naphtha. Nine others will focus on Merey 16, the country's top exported grade.
The goal is to increase production from the region to 800,000 barrels a day, including 247,000 barrels of DCO and 552,000 barrels of Merey 16.
— With assistance by Lucia Kassai
Fabiola Zerpa from Bloomberg.
bloomberg.com/ 07 01 2019
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.
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 firstname.lastname@example.org
By using this link, you agree to allow PW
to publish your comments on our letters page.
Any question or suggestions,
please write to: email@example.com
Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels