Venezuela began shutting down oil wells due to US blockade – Bloomberg

Venezuela has begun shutting down oil wells in the region home to the world’s largest oil reserves due to a blockade by the administration of US President Donald Trump, aimed at financially pressuring the country. This was reported by Bloomberg, citing its own sources, according to UNN.

DetailsIt is noted that Petroleos de Venezuela SA (PDVSA) began shutting down wells in the Orinoco region as the state oil refinery ran out of its reserves.

PDVSA aims to cut Orinoco production by at least 25% to 500,000 barrels per day. … This reduction represents 15% of Venezuela’s total production, which stands at 1.1 million barrels per day.

It is indicated that this decision signals a test of resilience for Venezuelan President Nicolas Maduro, who has tried to maintain exports throughout the blockade, which is the foundation of the South American country’s economy. According to one source, the shutdown of wells is considered a last resort due to operational difficulties and high restart costs.

ContextOn December 23, PDVSA approved the idea of cutting production, starting on December 28. The plan is to shut down wells in the heaviest oil region of Orinoco, Junin, and then move to the remaining fields, Ayacucho and Carabobo, which contain less heavy oil.

China is the main buyer of Venezuelan oil. The US imposed sanctions against Venezuela in 2019, and this month US President Donald Trump ordered a military blockade, stating that it was necessary to stop drug cartels.

RecallEarlier, the CIA launched a drone strike on a port facility on the Venezuelan coast, which was the first known US attack on a target inside the country. The strike targeted a remote dock that the US government believed was being used by a Venezuelan gang to store and move drugs.

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