Page 12 - LatAmOil Week 01 2023

LatAmOil VENEZUELA LatAmOil

They also exempt Chevron, under certain government and opposition proceed.
conditions, from penalties under the existing
sanctions regime. The US government began Petroboscan loadings
restricting investment in Venezuela’s oil sec- In related news, another Chevron-PdVSA joint
tor in early 2019, during the administration of venture may be preparing a second shipment
then-President Donald Trump, in response to of crude for export. Multiple sources cited by
reports that President Nicolas Maduro resorted Argus Media said PdVSA had begun loading
to fraud to secure re-election in late 2018. It 250,000 barrels of heavy oil on the Beauty One
made no move to lift or lighten the sanctions tanker in Bajo Grande at the weekend. The ves-
before the Maduro regime made a certain sel was slated to finish filling its tanks and depart
amount of progress in negotiations with the the port on January 2, said the sources, including
Venezuelan political opposition. an unnamed company insider.
The Biden administration issued GL 41 Argus Media’s sources said the Beauty One
after authorising certain European companies had arrived in port on December 29, eight days
to resume imports of Venezuelan crude oil in after the resumption of production by Petro-
order to recoup pending debts. Washington has boscan, a joint venture between Chevron and
also lifted the individual sanctions imposed on PdVSA. Petroboscan is based in Zulia, the same
select Venezuelan individuals, while also releas- state that is home to Bajo Grande, and is now
ing relatives of the first lady of Venezuela who yielding 10,000 barrels per day (bpd) of ultra-
were convicted on drug trafficking charges. heavy crude.
While Chevron asked Washington in early Ship-tracking data sources do not show
2022 to take broader operational control of its Chevron to be the charterer of the Beauty One.
Venezuelan ventures, it has only secured limited However, Argus Media’s sources confirm that
permission to resume work. US officials have the vessel, which has primarily been used for
also said that the scope of Chevron’s authority cabotage in Venezuela in recent months, is cur-
will be scalable as talks between Venezuela’s rently loading crude for export. ™

BRAZIL
ABPIP comments on investment trends

in Brazil’s onshore oil and gas sector

A survey conducted by the Brazilian Independ- production levels had been in decline since 2012
ent Oil and Gas Producers Association (ABPIP) but said the company’s business strategy saw
has revealed that the country’s small- and output reaching 500,000 barrels of oil equivalent
medium-sized oil firms are expected to invest per day in 2029, up from 150,000 boepd in 2016.
BRL40bn ($7.4bn) in onshore fields by 2029. Onshore yields have been rising “substantially”
This trend is being driven partially by the ever since new companies began entering the
activities of the national oil company (NOC) market, he added.
Petrobras. The state-owned company has been He further noted that Petrobras has already
selling off its onshore fields and other non-core sold off a number of offshore as well as onshore
assets in order to focus on the development of assets. Reuters corroborated his remark, noting
its offshore pre-salt fields, noted Anabal Santos, that the NOC had sold a total of 204 conces-
ABPIP’s executive secretary. sions, including 165 onshore sites and 39 off-
Since these divestments have boosted Petro- shore sites, since it first rolled out its divestment
bras’ investments and production, they are strategy in 2013.
likely to continue, even now that leftist Luiz ABPIP includes a number of major inde-
Inacio Lula da Silva has taken control of Bra- pendent players in Brazil’s oil sector, including
zil’s government, Santos told Reuters. “We are the likes of Eneva and PetroReconcavo. The
convinced that common sense will prevail,” he group’s members are working to increase out-
informed the news agency shortly before Lula’s put at onshore oilfields acquired from Petrobras.
inauguration on January 1. But Petroreconcavo’s CEO Marcelo Magal-
He also predicted that the NOC would haes stresses that his firm does not owe its suc-
expand the sell-off campaign to include shal- cess solely to old Petrobras assets. “We don’t only
low-water assets. “This process [of Petrobras live off of Petrobras’ divestment programme ...
selling assets] should be expanded in shallow [We] can make acquisitions, partnerships, farm
waters,” he commented. in ... We’re just getting started,” he was quoted by
Santos noted that Petrobras’ onshore Reuters as saying late last month. ™

P12 www. NEWSBASE .com Week 01 04•January•2023