Tehran - BORNA - According to a Bloomberg report citing two informed sources who requested anonymity, the state-run oil company PDVSA began closing wells on December 28. The move comes as storage facilities reach full capacity and inventories surge due to the inability to export crude under the current blockade.
Significant Production Cuts
The sources revealed that PDVSA intends to slash production in the Orinoco Belt by at least 25%, bringing it down to 500,000 barrels per day (bpd). This represents a 15% decrease in Venezuela's total nationwide production, which currently stands at approximately 1.1 million bpd.
The decision follows efforts by President Nicolás Maduro’s government to maintain oil exports—the lifeblood of the South American nation’s economy—despite the U.S. naval presence. One source emphasized that deactivating wells is considered a "last resort" due to the immense operational challenges and the prohibitive costs associated with restarting them in the future.
Targeting the Orinoco Belt
PDVSA reportedly approved the production cut plan on December 23. The strategy involves:
Initial Phase: Shutting down wells in the Junín field, which contains the heaviest grade of crude in the Orinoco region.
Second Phase: Moving to the Ayacucho and Carabobo fields, which produce slightly lighter grades of heavy oil.
Background: The U.S. Blockade
Washington first imposed sweeping sanctions on Venezuela’s oil industry in 2019. However, the situation escalated in December 2025 when President Donald Trump ordered a full military blockade, claiming the move was necessary to intercept drug cartels.
Despite these measures, China remains the primary buyer of Venezuelan crude, although the naval blockade has made the logistics of these shipments increasingly perilous and difficult to manage.
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