US extends permission for oil companies to operate in Venezuela
The United States has renewed a license that will extend the authorization to some oil service companies to maintain operations in Venezuela. The license does not allow companies to drill for, process or handle Venezuelan-sourced crude, Reuters reported on Tuesday .
The oil asset conservation license was originally granted in 2019 to US oilfield service companies Baker Hughes, Halliburton, Schlumberger and Weatherford International. The license allows them to maintain a physical presence in the country, including their assets, but does not allow them to do anything with PDVSA or any Joint Venture, including well maintenance.
Chevron has also obtained a license, but Chevron's license is broader. Chevron is the only US company authorized to operate in Venezuela after obtaining a six-month license to operate under its joint ventures with PDVSA. Profits from Chevron's Venezuelan-derived crude will be used to pay off PDVSA's debt to Chevron and will not contribute to the state oil company's profits.
The Venezuelan oil industry has been hit hard by US corruption, mismanagement and sanctions. Venezuela is heavily dependent on crude oil revenues to finance its budget. By 2023, Venezuela planned to finance 63% of its budget with oil revenues.
Venezuela's oil exports increased in March, reaching their highest levels since last August, thanks mainly to the activity of Chevron. Venezuela exported nearly 775,000 bpd in March, with China as the main buyer.
Some oil utilities, including Baker Hughes, pushed last year to restart drilling in the sanctioned South American country, suggesting to analysts that could boost Venezuela's crude output above 1 million. barrels per day.
For now, however, exports from Venezuela are at a survival level, especially considering that Venezuela is the country with the largest oil stocks in the world. Furthermore, the authorization to operate has failed to overcome the refining problems that cause a severe shortage of fuels in a country that should have plenty.
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The article The US extends the permit for oil companies to operate in Venezuela comes from Scenari Economics .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/gli-usa-prolungano-il-permesso-per-le-societa-petrolifere-ad-operare-in-venezuela/ on Wed, 24 May 2023 08:00:56 +0000.