Venezuelan authorities have begun shutting down oil wells in the Orinoco belt, considered the country’s largest oil region, due to a lack of storage capacity arising from the American blockade. The Bloomberg agency reports this.
According to its information, the company Petroleos de Venezuela SA started closing fields in the region on December 28. Production is expected to decrease by at least 25%, to a level of 500 thousand barrels per day. This accounts for 15% of Venezuela’s total oil output, which is 1.1 million barrels daily.
The source called the well shutdowns an extreme measure because restarting them requires significant expenditures and complex technical solutions. The stoppage began with the heaviest oils in the Junin area, and then authorities may proceed to the Ayacucho and Carabobo sections, where lighter oil is extracted. The decision to lower production was made by the authorities on December 23. Its practical implementation commenced several days later.
China is named as the main purchaser of Venezuelan oil. Earlier this month, US President Donald Trump announced a naval blockade of Venezuela. He explained this by the necessity of combating drug cartels.
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