Venezuela ups production in a return to the oil game

Venezuela has upped oil production to 850,000 bpd with the goal of reaching 1 million bopd, the country’s oil minister said on Wednesday.

In October 2023, the USA significantly eased sanctions on Venezuela’s oil sector due to guarantees agreed by the local government for an election in the South American country in 2024.

Since then, the local oil and gas industry has seen a fast return to production, including French E&P company Maurel & Prom signing agreements to revive oil production at its assets in the country.

In November 2023, China proposed restarting oil trade with the country by buying 8 million boe per month from state-run Petróleos de Venezuela or PDVSA.

“We have set a plan with several phases: recovery, stabilisation and growth,” said Erick Perez, minister of energy for Venezuela and managing director of PDVSA.

“Of course, six months in the oil industry is a short time, [but] will allow us to progress. In the medium term, we will see the results.”

Venezuela has around 5,000 active wells. In October its oil output was 786,000 bpd. According to official data, gas output averages around 4 bcf per day.

In October 2023, Trinidad and Tobago began price negotiations for natural gas imports from Venezuela following signing a profit-sharing agreement in September 2023 to jointly develop the Dragon field.

The Dragon field, which sits in Venezuela’s territorial waters, is believed to contain 4.2 tcf (118.94 bcm) of natural gas.