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Chevron Could Get Approval To Ramp Up Oil Production In Venezuela

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Three well-placed unnamed sources told Reuters Washington could give Chevron approval to significantly boost Venezuela’s oil production as early as this weekend if the Nicolas Maduro government resumes negotiations with the opposition.

This potential means sanctions on Venezuela will be eased as the US pushes to boost oil production to ease skyrocketing prices.

Allowing Chevron to play a key role in boosting Venezuela’s oil production has been used as leverage to force negotiations between the Maduro government and the opposition.

Over the weekend, talks are expected to take place in the presence of the United States between the Maduro government and the opposition in Mexico City.

Relieving sanctions on Venezuela is one of the only options left for the Biden administration to boost oil production. OPEC+ has refused to heed Washington’s calls for more production. instead of, 2 million bpd until the end of the year. Neither Russia nor Iran have eased sanctions, and US shale producers are maintaining discipline and resisting demands for more production.

Venezuela has the world’s largest oil reserves of 303 billion barrels. However, Western oil companies fled under Hugo Chavez’s nationalizing regime, and US sanctions ultimately nearly collapsed the oil industry.

Venezuela’s state oil company PDVSA was producing only 666,000 bpd as of September this year. return home venezuela Returning to its former glory will require the involvement of a Western supermajor, and Chevron is the only one left in the country.

Chevron is seeking permission from Washington to manage four joint ventures with PDVSA, but that permission has been delayed by the U.S. attempt to overthrow Maduro, who was controversially re-elected in 2018.

By Charles Kennedy for Oilprice.com

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