Russia, Venezuela to resume, double oil production

By Al Mayadeen English
Source: Agencies
19 Nov 2023 08:47
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The Venezuelan Foreign Minister says Russia and Venezuela will be holding talks to restore their previous oil production levels to double it.

Venezuela's Foreign Minister Yvan Gil Pinto speaks during a joint press conference with Russian Foreign Minister Sergey Lavrov in Moscow, Russia, on Thursday, Nov. 16, 2023 (AP)

Venezuelan Foreign Minister Yvan Gil Pinto revealed, in a statement to Sputnik, that Russia and Venezuela are poised to revive and elevate their collaborative efforts in the oil sector.

The two countries have agreed to restore the previous level of daily oil production and subsequently double it.

"We have agreed to resume negotiations and the participation of Russian companies in joint ventures within the framework of the agreement that [Venezuelan state-run oil company] PDVSA has. We can say that at the first stage, we are striving to restore the level of production that we had a couple of years ago. The second goal is to increase this level of production at least twice," the Venezuelan Foreign Minister said.

He underscored the significance of resuming talks and rekindling partnerships, indicating a strategic move towards bolstering oil production.

Notably, the joint oil production between Russia and Venezuela has reached 120,000-150,000 barrels per day in recent years.

PDVSA, Gazprom are in talks for new gas projects

The Foreign Minister added that the Venezuelan state-owned oil and natural gas company PDVSA and the Russian energy giant Gazprom are in talks to discuss new gas projects in Venezuela.

"Gazprom has already operated in Venezuela, and has already worked on projects that have been affected in one way or another by sanctions against the republic. Now we are at a new stage of cooperation, primarily on issues related to exploration and production at new gas fields. These issues will be resolved in the coming weeks. Gazprom's management has been holding meetings with colleagues from PDVSA to work out the parameters of participation, technical specifications," Gil told Sputnik.

Regarding the easing of US sanctions on the country, Venezuelan Foreign Minister Yvan Gil Pinto told Sputnik that this will in no way affect the oil cooperation between Moscow and Caracas.

"Russia and Venezuela have bilateral cooperation, it is direct. It is impossible that it was in any way affected by any agreements. We continue working with companies from Russia, they are our reliable allies in many projects, and we intend to keep it," Gil told Sputnik.

Back in August, it was reported that 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, 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.