Venezuela’s Oil Production and Exports Post-Election

CARACAS (Reuters) – Venezuela’s oil production and exports were functioning normally on Thursday following last weekend’s disputed presidential election, which has sparked protests and international reactions. However, shipping delays that have accumulated since early this year persist, according to sources.

Impact of the Election
Due to the electoral process, which usually necessitates the mobilization of the military, the state oil company PDVSA instructed joint ventures and its operational areas to reduce staff and increase security levels in the preceding week. This order has since been relaxed, allowing most PDVSA executives and staff to return to their normal shifts. Sources indicate that crude production levels, which averaged 922,000 barrels per day in June, have not declined.

Shipping Delays
Despite normal operations, oil and fuel exports continue to face delays stemming from slow shipping from the country’s main terminal, Jose, and the requirement for ship-to-ship loadings for certain products, which generally take longer. Additionally, some fuel imports are experiencing delays, as reported by shipping data and sources.

The U.S. government granted a broad license to Venezuela’s oil industry last year, enabling PDVSA to freely export to selected markets. This led to heightened demand for Venezuelan oil and increased fuel imports through swaps.

Since the OPEC nation’s production did not rise accordingly, PDVSA began facing delays in early 2024 in delivering cargoes that had been negotiated with existing and new customers. Some delays reach up to 60 days, particularly affecting importers of Venezuelan oil in Asia.

Among companies receiving Venezuelan crude under specific U.S. licenses, such as U.S. Chevron and Spain’s Repsol, delays have not been as significant, according to PDVSA’s export records.

PDVSA did not respond to a request for comment.

U.S. officials stated this week that the individual licenses granted to energy companies operating in Venezuela will remain unchanged or will not be withdrawn for now, despite Washington’s plans for actions in response to the electoral dispute, including potential new sanctions on the country.