Internal production reports issued by state-owned PdV showed storage and export constraints have driven down Venezuela's oil production to 300,000-350,000 b/d in recent days.
Venezuela's crude production has been declining for years, with US oil sanctions accelerating the trend over the past 18 months. The June data brings output to its lowest level in almost nine decades except for a near shutdown during a 2002-2003 oil strike.
Crude output in the Orinoco heavy oil belt is down to just 100,000-150,000 b/d. PdV's mature eastern and western divisions combined are producing less than 200,000 b/d. Venezuela produced an average of 550,000 b/d in May and 580,000 b/d in April.
Venezuelan oil industry officials attribute the sharp decline so far in June to a lack of storage and tankers as well as naphtha used to dilute the Opec country's extra-heavy crude.
PdV's PetroSinovensa blending venture with China's state-owned CNPC and PetroMonagas with a Russian state-owned partner were only producing 15,000 b/d apiece as of 13 June, compared with around 80,000 b/d earlier this year. PdV's venture with Chevron was running at around 30,000 b/d. In PdV's western division, PdV's PetroBoscan venture with Chevron and its PetroZamora partnership with a Russian company were offline.
