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Venezuela mulls proposal to extend PDVSA-Chevron oil joint venture through 2047
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Venezuela mulls proposal to extend PDVSA-Chevron oil joint venture through 2047
Jun 17, 2024 2:06 PM

CARACAS, June 17 (Reuters) - Venezuela's National

Assembly on Monday began discussing a proposal to extend through

2047 a contract between state oil company PDVSA and U.S. company

Chevron ( CVX ) to operate a joint venture in the country's

largest producing area.

PDVSA and Chevron ( CVX ) have four joint ventures in Venezuela that

are producing some 200,000 barrels per day (bpd) of crude.

The companies are requesting an extension for Petropiar in

the Orinoco Belt, the partnership that produces the most oil,

Venezuela's deputy oil minister, Elianny Palencia, said during a

presentation at the National Assembly in Caracas.

The extension for Petropiar will apply for the period

2033-2047, once the current association expires, under a plan to

drill up to 386 wells in the area, according to the document

presented to the National Assembly, seen by Reuters.

PDVSA and Chevron ( CVX ) won approvals for similar 15-year

extensions last year for two other joint ventures. An extension

of the fourth joint venture is not yet planned.

All the joint ventures produce and export crude under a

license granted by the U.S. Treasury Department to Chevron ( CVX ) in

late 2022 as an exemption to the U.S. sanctions on the South

American country. But more investment is still needed to reach

production levels before oil sanctions were first imposed in

2019.

Venezuela's crude output is approaching 1 million bpd, said

oil minister Pedro Tellechea last week. In 2023, the country's

production averaged 783,000 bpd, and rose to 864,000 bpd in the

first quarter, according to figures reported to OPEC.

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