A unit of Venezuela's state oil company PDVSA and U.S. oil major Chevron have requested a 15-year extension for two of their joint ventures from the country's oil ministry, the deputy minister Erick Perez said Dec. 13.
PDVSA and Chevron have expanded operations since late last year under a special U.S. license, allowing Venezuela to resume crude exports to what was its largest market, the U.S. But more investment is needed to reach production levels seen before oil sanctions were first imposed in 2019.
The largest of the two joint projects, Petroboscan, which is currently producing some 65,000 bbl/d of heavy crude, will require $1.28 billion for investment and $3.35 billion for operational expenses in the 15-year period, Perez added during a conference.
The second project, Petroindependiente, will need $10.7 million for investment and some $205 million for expenses.
Venezuela's National Assembly, dominated by the government's party after an election that did not have international observation, is expected to discuss the request before giving the go-ahead.
Perez also said Venezuela is producing below its 1.9 MMbbl/d OPEC quota, so it expects to remain exempted from any OPEC+ output cuts planned.
"Because of the sanctions, our output remains below the quota. We, of course, have a margin and want to continue ramping up (production)," Perez told Reuters on the sidelines of the conference.
Venezuela confirmed the government is working towards reviving the idle offshore gas project Plataforma Deltana near waters reclaimed by Guyana, but Perez did not provide details.
Recommended Reading
Message in a Bottle: Tracing Production from Zone to Wellhead
2024-04-30 - New tracers by RESMAN Energy Technology enable measurement while a well is still producing.
TGS Starts Up Multiclient Wind, Metaocean North Sea Campaign
2024-05-07 - TGS is utilizing two laser imaging and ranging buoys to receive detailed wind measurements and metaocean data, with the goal of supporting decision-making in wind lease rounds in the German Bright.
Exclusive: Silixa’s Distributed Fiber Optics Solutions for E&Ps
2024-03-19 - Todd Chuckry, business development manager for Silixa, highlights the company's DScover and Carina platforms to help oil and gas operators fully understand their fiber optics treatments from start to finish in this Hart Energy Exclusive.
CERAWeek: AI, Energy Industry Meet at Scary but Exciting Crossroads
2024-03-19 - From optimizing assets to enabling interoperability, digital technology works best through collaboration.
Cyber-informed Engineering Can Fortify OT Security
2024-03-12 - Ransomware is still a top threat in cybersecurity even as hacktivist attacks trend up, and the oil and gas sector must address both to maintain operational security.