CARACAS – Venezuela’s state oil company, PDVSA, begins importing Iranian oil, which is lighter than Venezuelan oil, in order to dilute the heavy oil it extracts and process it in its refineries and make it ready for export.
Energy deals between the two internationally sanctioned countries, based on crude oil swaps, concluded last year were extended last week after Iranian Oil Minister Javad Oji’s visit to Venezuela.
Oil production, which was around 3 million barrels a day in 2013, decreased to 500 thousand barrels in 2020 in Venezuela, which has serious difficulties in extracting oil and processing the oil it extracts.
According to the data reported by the Venezuelan government to the Organization of Petroleum Exporting Countries (OPEC) last year, the main reason why the oil production, which was 636 thousand barrels per day on average, increased to 871 thousand barrels in December, is attributed to this agreement made with Iran by experts.
Although its economy is dependent on oil, PDVSA has been supplying spare parts and new equipment from Iran for a while to increase oil production, which has decreased by nearly 80 percent in the last 8 years, and for the maintenance and modernization of oil refineries that are operating far below their capacity.
It is reported that Venezuela, which bought 200 thousand barrels of Iranian crude oil in mid-April, will receive 400 thousand barrels this week.
Venezuela, which was also visited by OPEC Secretary General Mohammed Barkindo last week, is one of the 13 principal members of OPEC and the country with the world’s richest oil reserves, but produces a very limited amount of oil.
According to the figures reported by the authorities in Venezuela to OPEC, 756,000 barrels of oil per day were produced in the South American country in the first quarter of this year. This figure is 7 percent lower than 817 thousand barrels in the last quarter of last year.
Venezuelan President Nicolas Maduro claimed that his country could meet some of the energy deficit caused by the occupation of Ukraine and that they could produce 2 million barrels of oil in a short time with sufficient investment.