Analysis: Venezuela adjusts as sanctions spur Western oil partners to retreat

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Analysis: Venezuela adjusts as sanctions spur Western oil partners to retreat
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Venezuelan state oil company PDVSA is turning to local partners as it seeks to plug the gap left by Western companies in the OPEC nation's oil sector, according to interviews with a half dozen industry sources, as U.S. companies win a reprieve to maintain a limited presence in the South American country.

In the more than two years since, crude output has tumbled by nearly two-thirds to less than 500,000 barrels per day . U.S. and European firms have scaled down their presence to comply with the restrictions or out of fear of possible punishment.

Neither PDVSA nor Venezuela's oil ministry responded to requests for comment. The U.S. Treasury Department, which enforces sanctions, declined to comment. A State Department spokesperson said the administration "continues to assess its approach to the Venezuela sanctions program." In the year since that decision, output at Chevron's main projects has plummeted. The Petroboscan joint venture in western Venezuela, 40% owned by Chevron, has been largely offline for the past year. Petropiar, an Orinoco belt project 30% owned by Chevron, was producing 50,000 bpd as of mid-May, down from 80,000 bpd last August, according to PDVSA documents seen by Reuters.

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