PDSVA, Venezuela’s state-owned oil company, has told eight foreign clients that it will not have the ability to supply the contracted volumes of crude oil.
A company employee told S&P Platts: “Among the affected clients due to the low availability of crude to export are Nynas, Tipco, Chevron, CNPC, Reliance, Conoco, Valero, and Lukoil, which will partially receive the volumes established by the contracts.”
PDVSA will not be able to supply half of the amount of Merey 16 for June, with 578,000 bpd available out of the 1.271 million contracted. Its total crude commitments for the month are 1.495 million bpd, but only has 694,000 bpd available.
Further sanctions imposed by the US, along with severe mismanagement and corruption has meant production from the South American country has plummeted by as much as 900.000 bpd, with the latest daily average output at 1.41 million bpd.