BREAKING

Venezuela's oil production signals remarkable rebound

By Al Mayadeen English
Source: Agencies
17 Aug 2023 08:29
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In the dynamic realm of Venezuela's oil industry, a notable resurgence in daily oil production has marked the period from January to July 2023.

An oil rig in Maracaibo Lake in Venezuela. (AFP via Getty Images)

Venezuela's daily oil production experienced a rise from 732,000 to 810,000 barrels per day between January and July 2023, as per data released by Rafael Tellechea, the Venezuelan Oil Minister and head of the state oil and gas company PDVSA.

Tellechea, expressing his viewpoint on X (previously known as Twitter), attributed this growth to President Nicolas Maduro's strategy and the efforts of PDVSA employees, showcasing the country's ability to withstand blockades and rely on its internal capabilities.

Based on infographics created using OPEC reports on the oil market, Venezuela's oil production was at 732,000 barrels per day in January 2023. The zenith of production was recorded at 819,000 barrels per day in May, while July saw production at the level of 810,000 barrels per day.

In an earlier interview, Tellechea stated that Venezuela aims to attain a production level of 1 million barrels per day by the year's end.

Furthermore, the nation aspires to achieve a production rate of 1.76 million barrels per day within the subsequent year. During the first half of 2023, oil refining in Venezuela reached 300,000 barrels per day.

This comes a few days after Iranian fuel company NIORDC, sponsored by the country’s Oil Ministry, revealed its first homemade catalyst intended to be installed at a cracking unit in a refinery in Venezuela, where fuel production suffered impediments as a result of parts shortages caused by US sanctions.

In defiance of unilateral US sanctions, Iran has consistently sent fuel tankers to Venezuela in the past few years and helped in refinery repairs.

It is worth noting that PDVSA, the Venezuelan state-owned oil and natural gas company, relies on Iranian South Pars condensate to convert its heavy oil to exportable grades. Iranian crude oil is also refined into motor fuel in South America.

Since 2020, the two countries have worked on expanding cooperation, especially in energy projects and oil trade, amid the draconian US sanctions that they have repeatedly been subject to. This has helped both countries ease the effects of the sanctions on their economies.