A Venezuelan oil sector worker of Petroindependencia SA, a PDVSA-Chevron joint venture in Venezuela. Photo: Chevron.
The joint venture of Petróleos de Venezuela (PDVSA) with Chevron, Petroindependencia, will continue to operate until 2050, after the Venezuelan National Assembly extended by 15 years the period of its activity in Venezuela.
During its regular session on Friday, July 18, the National Assembly unanimously approved the extension request of Petroindependencia, which is headquartered in the state of Carabobo.
Petroindependencia is a joint venture established in 2010 as part of then President Hugo Chávez’s oil sector nationalization scheme. Initially it was granted an operation period of 25 years, that is, until 2035.
In this joint venture, Venezuela has 60% participation while Chevron holds 34%.
The National Assembly approved a modification of Petroindependencia’s incorporation decree which previously exempted the company and its shareholders from paying a deposit for the extension of its period of operation. However, now they will have to pay it.
In this respect, the president of the Energy and Petroleum Commission, Deputy Ángel Rodríguez said the geopolitical, economic and energy conditions of 2010 do not exist anymore, so the joint venture will no longer enjoy the exemption.
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He added that after the fall in production and income caused by the US blockade, the Venezuelan oil industry is going through a sustained recovery process, and that this year production is likely to reach 1.2 million barrels per day.
According to the latest report of the Organization of Petroleum Exporting Countries (OPEC), Venezuela produced 904,000 bpd on average in the second quarter of this year (April-June). This represents an increase of 4.6% compared to the same period of last year.
Chevron also highlighted that its activity in Venezuela has had a positive impact on the company’s 2023 income.
In December 2023, PDVSA and Chevron signed several contracts to continue their joint operations and activity in the country to improve oil production. This came after the US government’s Office of Foreign Assets Control authorized the US-based oil company to resume its operations in Venezuela.
(RedRadioVE) by Ana Perdigón
Translation: Orinoco Tribune
OT/SC/DZ
