Venezuela forced to import 13 million barrels of oil this year

Must Read

Business Chamber bids farewell to ExxonMobil Guyana President

The Georgetown Chamber of Commerce and Industry (GCCI) on Thursday bid farewell to President of ExxonMobil Guyana, Rod Henson,...

Hundreds of Guyanese businesses accessing CLBD’s online training courses

Hundreds of Guyanese businesses are benefitting from a wide range of online training courses being offered by the Centre...

World will still rely on oil and gas for much of its energy needs beyond 2040 – WoodMac Analysts

In keeping with the goal of the Paris Agreement which calls for a limit to the increase in global...
OilNOW
OilNow is an online-based Information and Resource Centre which serves to complement the work of all stakeholders in the oil and gas sector in Guyana.

Venezuela, home to the largest oil reserves in the world, is seeking to import 13 million barrels of fuel this year as the country’s refineries are now operating at less than half of their capacity.

Output has dropped at the crisis-hit OPEC country’s refineries in recent months, with critics blaming shortages of spare parts, lack of maintenance, and a shaky electrical grid.

Falling output at refineries means that Venezuela needs to import more gasoline, squeezing the national budget even further.

State-run oil company Petroleos de Venezuela SA is inviting trading houses and refineries to supply as much as 70,869 barrels of oil products daily from July through the end of the year, according to tender documents obtained by Bloomberg. The company is seeking gasoline, gasoline octane-enhancers, diesel, and also intermediary feedstocks such as vacuum gas oil and catalytic naphtha, which refineries use for fuel production. PDVSA is also seeking heavy naphtha, a diluent used mixed with its heavy oil so crude can flow more easily through pipelines and be sold or refine

The purchases account for about a third of the country’s oil products needs, estimated at 200,000 barrels a day, says Alejandro Grisanti, director of the Caracas-based consultancy Ecoanalitica.

“This volume should supply just part of the country’s needs this year,” he said. “PDVSA will certainly come back for more.”

Venezuela, immediate neighbor of soon-to-be oil producing country Guyana, is a stark example of what gross mismanagement and political strife can do, even to a country rich in oil resources. Cognizant of these perils, Guyana is in a race against time to put in place vital legislation, strong institutions and a prepared population, as oil production is set to begin in 2020.

- Advertisement -

Latest News

Business Chamber bids farewell to ExxonMobil Guyana President

The Georgetown Chamber of Commerce and Industry (GCCI) on Thursday bid farewell to President of ExxonMobil Guyana, Rod Henson,...

Hundreds of Guyanese businesses accessing CLBD’s online training courses

Hundreds of Guyanese businesses are benefitting from a wide range of online training courses being offered by the Centre for Local Business Development (CLBD)...

World will still rely on oil and gas for much of its energy needs beyond 2040 – WoodMac Analysts

In keeping with the goal of the Paris Agreement which calls for a limit to the increase in global temperatures to below 2 degrees...

Guyana remains cautious of Dutch disease even as oil takes GDP to an “impressive” 5.4 percent

Following its latest assessment of the economy’s performance for the year 2019, the Government of Guyana has stated in its End of Year Outcome...

High performance from Guyana as 2020 half-year discoveries hit lowest in 100 years

Global discoveries of conventional resource volumes reached just 4.9 billion barrels of oil equivalent (boe) in the first half of 2020 with Guyana among...

More Articles Like This