Venezuela Oil Ventures Face Production Cuts Amid Export Crisis

PDVSA, Venezuela's state-run oil company, urges joint ventures to reduce crude production due to onshore stockpiles and lack of diluents amid export halts. This move comes after U.S. forces extradited President Nicolas Maduro and the U.S. blockade on sanctioned tankers severely affected oil exports.

Venezuela's state-run PDVSA is instructing its joint ventures to reduce crude oil production by shutting down certain oilfields or well clusters. This action comes as onshore oil stockpiles increase and the company faces a shortage of diluents amid a halt in exports, according to sources familiar with the decision.

The OPEC nation's oil exports have come to a standstill, exacerbated by a significant political crisis following the U.S. extradition of Venezuela's deposed President Nicolas Maduro and his wife. The U.S.-imposed blockade on all sanctioned oil tankers operating in Venezuelan waters has further compounded the export paralysis.

In addition to the blockade, U.S. authorities have seized two oil cargoes, further straining Venezuela's ability to export oil and leading PDVSA to take drastic measures in managing their production capabilities.

(With inputs from agencies.)