Venezuela Maintains Steady Oil Production Over US Threats, Suspends Chevron Cargoes

Caracas, April 15, 2025 (venezuelanalysis.com) – The Venezuelan oil sector has maintained a stable output in the face of ramped-up economic sanctions and tariff threats from the Donald Trump administration.

The latest OPEC monthly report placed the Caribbean nation’s March production at 911,000 barrels per day (bpd), as measured by secondary sources. The figure is virtually on par with the 912,000 bpd registered in February and has plateaued since late 2024 following months of steady growth.

For its part, Venezuelan state oil company PDVSA reported a March output of 1.048 million bpd, up from 1.025 million bpd the prior month. The direct and secondary data have had minor discrepancies over time due to disagreements on the inclusion of natural gas liquids and condensates.

Venezuela’s oil industry is bracing for the impact of the latest escalation of US coercive economic measures. The US Treasury Department has pushed out PDVSA joint venture partners and importers while threatening to levy 25 percent “secondary tariffs” on trade from countries receiving crude and natural gas from Venezuela.

The renewed attacks build on the “maximum pressure” campaign installed during Trump’s first term, which included financial sanctions, an export embargo, secondary sanctions and other measures to strangle the country’s main source of revenue.

According to Reuters, the White House’s tariff threats had an immediate impact, leading to an 11.5 percent month-on-month export decrease. Caracas disputed the figure. 

The risk of sanctions and tariffs leads to greater efforts to conceal the location of tankers and shipment origins. In addition, PDVSA is forced to resort to unreliable intermediaries and to offer significant discounts on its crude barrels. 

Venezuela’s flagship Merey blend, favored by Asian customers, fell by 5.9 percent last month. The global instability triggered by the widespread imposition of US tariffs led to oil price decreases across the board, with the OPEC reference basket price falling by 3.9 percent in March.

Following an initial halt, Venezuelan crude shipments resumed last week, with importers such as India’s Reliance Industries given until May 27 to wind down dealings with PDVSA. Shipments to China, the largest destination for Venezuelan oil, have reportedly increased in recent weeks.

The Chinese government has responded to successive tariffs levied by Washington. However, it has not given any instruction to refiners concerning Venezuelan crude imports. Venezuelan oil shipments have also been used to repay long-term loans.

The Nicolás Maduro government has condemned the US attacks on the oil industry, reiterating calls for foreign investment and vowing that the energy sector would continue to grow. According to energy outlet Petroguía, Caracas is considering filing a formal complaint before the World Trade Organization over the White House’s secondary tariff threats. 

Chevron cargoes canceled

The oil sector instability triggered by recent US measures saw Venezuela cancel several scheduled Chevron shipments. Two tankers will return their cargoes to port in the coming days, while nine others had their loading permits suspended as well.

Venezuelan Vice President and Oil Minister Delcy Rodríguez blamed renewed US sanctions for halting the oil giant’s ability to make payments to the Venezuelan state.

“Because of the economic war launched by the US against oil companies, Chevron has returned crude cargoes to PDVSA,” Rodriguez wrote on social media. “This crude is being sold on international markets.”

The Texas-based corporation saw its license to extract and export crude from projects in Venezuela revoked in early March. The firm was handed a May 27 deadline to cease its operations in the country.

Chevron owns minority stakes in four joint ventures with PDVSA that currently produce around 250,000 bpd, roughly a quarter of the Caribbean nation’s total output. The corporation’s agreement with PDVSA since resuming operations in Venezuela in 2022 reportedly only entailed the payment of taxes and royalties, with the remaining profits used to offset existing debt.

Edited by Cira Pascual Marquina in Caracas.