Venezuela exported crude oil at a rate of over 1 million barrels daily last month, for the first time in six months, Reuters has reported, citing shipping data.
According to the data, oil shipments from Venezuela last month averaged 1.09 million barrels of crude and fuels daily, with most of it going to India and some getting stored in tanks in the Caribbean, Reuters noted. Venezuela also exported an average daily of 360,000 barrels of petrochemicals and byproducts.
The March export figures are a substantial increase from February, when Venezuela shipped some 737,000 barrels of oil and fuels daily, although petrochemical and byproduct shipments in February were higher, at a daily average of 463,000 barrels.
Venezuela produced an average of 1.1 million barrels of crude daily last month, up from 942,000 barrels daily in February, according to a PDVSA presentation, as cited by Reuters last week. That’s a far cry from the 3 million barrels daily PDVSA was pumping in the 1990s but an improvement on the past few years nevertheless.
The turnaround followed the selective lifting of sanctions by the United States after it removed President Nicolas Maduro from power and took him to the U.S. to stand trial for drug trafficking, while effectively taking over Venezuela’s oil industry. Following the takeover, Venezuela also tweaked its oil law to facilitate new investment by oil majors.
The new oil law caps royalty rates at 30% but allows the government to set individual royalty rates for projects based on factors such as investment needs and competitiveness. Following the adoption of the new law, Venezuela’s interim president Delcy Rodriguez said she expected fresh oil investments of as much as $1.4 billion this year.
Two of the companies that have already expressed interest in a greater exposure to Venezuela’s hydrocarbons are Chevron and Shell, with the latter planning potential investments in natural gas in addition to oil production in the South American country.
By Irina Slav for Oilprice.com
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