Chevron could raise Venezuelan production by 33% without US sanctions

Caracas.- The Chevron Corp. might increase its crude production in Venezuela by 33% this year if the United States allows the oil explorer to resume drilling in the country, according to reports Bloomberg.

That would lift the company’s production in Venezuela to 200,000 barrels a day, according to people familiar with the situation who asked to remain anonymous to speak publicly on the matter. Production might reach 300,000 barrels a day next year, they said. Production of 500,000 barrels a day is possible by 2026 or 2027, one of the people said.

Such an increase might help ease a global supply situation that has pushed crude futures above $100 a barrel. But it depends on the United States further easing sanctions once morest the nation. So far, the Biden administration has said it will allow Chevron to engage in talks with state oil company PDVSA, but the US explorer is not allowed to drill or export crude.

The United States said on Tuesday it planned to ease some sanctions, and reached deals with European firms that would allow them to ship Venezuelan oil to Europe immediately.

Eni SpA and Repsol SA, which have joint ventures with PDVSA, might together add 50,000 barrels a day of crude within a year, an increase of around 40%, according to Francisco Monaldi, professor of energy economics at the Baker Institute for Public Policy. from Rice University.

With information from Bloomberg.

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