Venezuela has reportedly started reducing oil production as it grapples with the consequences of a US export embargo that has halted shipments, the country’s principal revenue source.
The state-owned oil company, PDVSA, initiated these cuts due to limited storage capacity amidst a blockade that has disrupted exports, reported Reuters.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The situation places additional strain on Venezuela’s interim government, which is attempting to maintain control following the capture of President Nicolas Maduro and his wife by US forces.
PDVSA has requested that joint ventures (JV), including those with China National Petroleum Corporation (CNPC) and Chevron, scale back output. The request comes as onshore inventories rise and there is a shortage of diluents needed for blending Venezuela’s heavy crude.
This affects operations such as Petrolera Sinovensa, Petropiar, Petroboscan and Petromonagas, which is now solely operated by PDVSA, having previously being co-managed with Russian state-run Roszarubezhneft.
Despite Chevron’s cargoes moving under a special licence from Washington, other shipments have stopped due to sanctions, which have also led to the seizure of two oil cargoes.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataWorkers at Sinovensa are preparing to disconnect some well clusters in response to the over-accumulation of heavy crude and diluent shortages, although these could be reconnected in the future, Reuters reported.
Meanwhile, Petromonagas reduced output, awaiting pipeline-provided diluents.
Production setbacks could affect refining processes and domestic fuel supplies, challenging the interim government’s efforts to secure revenue and maintain stability.
Oil Minister Delcy Rodriguez, currently Venezuela’s interim president, asserted last month that production and exports would persist in spite of US measures.
However, PDVSA has resorted to using vessels for crude storage since late December 2025 and slowing deliveries at its main port.
With onshore storage nearing capacity, the company has been using tankers as floating storage for crude and fuel, with more than 17 million barrels (mbbl) waiting offshore to depart.
Reuters cited TankerTrackers.com, reporting that no tankers at the Jose port are loading oil for export or domestic use.
Venezuela achieved daily output of approximately 1.1mbbl in November 2025. The country exported 950,000 barrels per day (bpd) then, but US actions reduced this to nearly 500,000bpd in December.
