InternationalInternational Economics

Iranian oil technical assistance to Venezuela / increase in Caracas oil production surprised the market

According to the Fars News Agency’s International Economics Reporter, quoting Oil PriceDespite years of mismanagement and insufficient investment in the maintenance of oil facilities, along with tough US sanctions against Venezuela’s oil industry that have led to a significant drop in oil production, the state-owned oil company has recently risen sharply. Venezuela’s oil production attention has been reported.

According to the OPEC Monthly Report for December 2021, Venezuela’s oil production in November reached 124,000 barrels per day, up 9 percent from the previous month and doubling to 434,000 barrels per day in November 2020. Is.

This production is much more than 569 thousand barrels per day of Venezuela’s average oil production in 2020 and is a little far from reaching the figure of one million barrels per day in 2019.

The main reason for the growth of Venezuelan oil production has been technical assistance and sales of diluents from Iran to this country.

It was in 2019 that the US Treasury Department banned the sale of gas condensate and diluents to Venezuela, which happens to be critical to the country’s extra-heavy oil production.

The United States was one of Venezuela’s largest suppliers of petroleum thinners until sanctions were imposed on Venezuela during President Donald Trump’s presidency.

Because of the import of these diluents, it is vital for Venezuela that the oil of the Orinoco field is very heavy and it is not possible to extract it without adding a diluent.

The lack of these materials had forced Venezuela to merge its high-priced light sweet crude with the Orinoco oil field in 2019 in order to extract oil from the field, which significantly reduced the country’s oil revenues.

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