Preview a drastic drop in oil production in Venezuela after sanctions against PDVSA

The consequences of the sanctions of the United States begin to be felt within Petróleos de Venezuela (PDVSA). Recognized sources of the national oil company S & P Global Platts that at the end of the month Crude production could drop by 300,000 barrels a day due to lack of diluent.

This diluent, which after the sanctions can no longer be imported from the United States by PDVSA, It is necessary to mix extra heavy crude from the Orinoco band.

These sources have argued that, at the end of February, the fall in production It would be less than 800,000 barrels a daywhen in December, according to S & P Global Platts, pumping reached 1.17 million barrels a day.

Sanctions are also expected block the 120,000 barrels a day of diluent sent by Washington to Venezuela by Citgo, a subsidiary of PDVSA in the United States.

Indian Reliance Industries is another supplier of PDVSA thinners, supplying about 65,000 barrels a day. However, this means that badysts believe that the company will probably avoid new agreements with the Venezuelan government that its US subsidiary, Ril USA, is not affected by the sanctions.

China Oil is one of the leading suppliers of thinners, with an approximate delivery of 50,000 barrels per day. This is part of a loan agreement reached with the Chinese government by the Nicolás Maduro regime.

In addition, fuel production has declined sharply. Most refineries remain inactive for the lack of crude oil and damaged equipment, as well as for a serious fuel shortage.

"We have no ships waiting for crude oil loading (…) There are also no ships that unload imported products on our docks, PDVSA isolates itself without possibility of sale or purchase, "said a Venezuelan national oil company. anonymously, S & P Global Platts.

An operator in Paraguaná said that "stocks are exhausted": "There are stocks of gasoline and diesel for less than two days".

According to a report by S & P Global Platts on Monday, the Paraguaná refining center it only worked at 20.6% of its capacity.

The tankers refused to unload because of the embargo imposed by the United States. In front of this situation, Manuel Quevedo, Minister of Petroleum and former General of the National Guard, He ordered that these vessels not be allowed to leave without paying the cargoes in advance.

PDVSA's customers, however, remain cautious that such payments could violate US sanctions.

Last week, the National Guard Chavist ordered the captain of the ship Mambo, at the Cardón refinery in Paraguaná, to unload the 140,000 barrels of diesel under penalty of imprisonment. Citgo, for his part, repeated to the captain that he had not done so because PDVSA had not paid yet.