ARKANSAS, Nov 23 (Future Headlines)- Venezuela, currently producing 850,000 barrels per day (bpd) of oil, anticipates a surge to 1 million bpd soon following the temporary lifting of U.S. sanctions. Deputy Oil Minister Erick Perez outlined the nation’s phased plan for recovery, stabilization, and growth, expressing optimism about reclaiming market share, particularly in the U.S. Amid negotiations for a fair presidential election, the six-month sanction reprieve offers Venezuela a window to revitalize its energy sector.

Current Production Levels:

Venezuela is presently producing 850,000 bpd of oil.

The nation aims to reach 1 million bpd soon.

In October, Venezuela’s oil output was 786,000 bpd.

Operational Landscape:

Venezuela manages around 5,000 active wells for crude and gas extraction.

Natural gas production stands at approximately 4 billion cubic feet per day.

The temporary lifting of U.S. sanctions, allowing Venezuela to export oil, gas, and fuel until mid-April, is a measure to encourage negotiations for a fair presidential election. The potential reversion of sanctions underscores the importance of diplomatic and electoral developments.

Venezuela’s strategy involves phased recovery, stabilization, and growth in the oil industry. The nation acknowledges the short timeframe of six months but expresses confidence in achieving progress.

Market Share Recovery:

Venezuela aspires to progressively recover market share, particularly in the U.S., which was historically a significant destination for its oil. The recovery of markets and customers is expected to improve over time. Continuous oil output growth depends on the importation of diluents to produce exportable heavy crude grades. Access to necessary resources is critical for sustaining and expanding oil production.

Venezuela is optimistic about rebuilding export ties, especially with the U.S. The nation is exploring deals for natural gas exports, including potential agreements with Trinidad and Tobago.

Talks with Trinidad’s government for the Dragon field, a U.S.-authorized offshore project, are advancing. The negotiations involve Trinidad’s National Gas Company (NGC) and Shell and aim to facilitate Venezuelan gas for LNG production and petrochemicals.

Ali Moshiri, former Chevron executive and CEO of Amos Global Energy, emphasizes the need for private participation to boost Venezuela’s energy sector. Restructuring debt and encouraging private investment are viewed as essential for reaching an ambitious oil output target of 2.5 million bpd.

Despite sanctions, state company PDVSA is credited with maintaining oil production, as noted by Ali Moshiri. Encouraging private participation and debt restructuring are identified as pivotal steps for attracting capital.

Moshiri suggests eventual privatization of the Venezuelan energy sector with government participation as an equity holder. This recommendation aligns with global trends emphasizing a balanced public-private approach for energy sector development.

Talks between Venezuela and Trinidad’s government for the Dragon field demonstrate diplomatic engagement. Negotiations with Trinidad’s Energy Minister Stuart Young underscore regional collaboration for mutual energy benefit.

Reporting by Moe Khaled; Editing by Sarah White