US sanction-hit Venezuela’s PDVSA offering oilfield operations to foreign firms


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US sanction-hit Venezuela’s PDVSA offering oilfield operations to foreign firms

PDVSA, the state-owned oil firm of Venezuela, a founding member of OPEC (Organization of Petroleum Exporting Countries), had been drawing up a plan to allow some JV partners to take over day-to-day operations of some of its oil field, as its own capacity had still been taking heavy headers following a US sanction earlier last year that nearly halved the output capacity of the oil-dependent South American nation and prompted a havoc-scale chaos over the far-left leaning country’s public finances, a former oil minister of Venezuela, a lawmaker from Venezuelan President Nicolas Maduro’s opposition alongside a number of industry sources had unveiled on Saturday, the 4th of January 2020, on condition of anonymity given the scale of political turbulence the military-backed Maduro’s government had been witnessing over the recent past.

Aside from that, industry sources familiar with the subject-matter had added on Saturday (January 4th) that productions of heavy-to-medium grade Venezuelan crude oil had dwindled to its lowest level in more than two decades last year, while a steep US sanction on PDVSA aimed at ousting far-left Nicolas Maduro’s government reportedly had evaporated nearly a third of the nation’s oil output from its peak a decade earlier.

If truth is to be told, instead of channelling PDVSA’s crude to some of its closest allies such as China and Russia at a much lower price alongside its part of a deal dubbed as “crude-for-debts, Maduro Government’s latest decision to cede some of its oilfields to foreign Joint Venture partner could come as a breather for PDVSA which could even ramp up fresh investments despite a US sanction dangling fire, suggested analysts.