Venezuela’s state oil company PDVSA has asked several joint venture partners to reduce crude oil production after exports stalled and storage tanks filled up amid a near-complete halt in shipments due to a U.S. oil blockade.
PDVSA’s move includes shutting down oilfields or well clusters as stocks stored onshore mount and the company runs out of diluents to blend Venezuela’s heavy crude for shipment.
Exports at a Standstill — A U.S. tanker blockade and sanctions have brought Venezuela’s crude exports to a near halt, leaving oil with nowhere to go and forcing producers to cut output.
Storage Crunch & Blend Issues — With storage tanks close to full and shortages of diluents needed for heavy crude, PDVSA must slow production or risk operational problems.