BP restarted the Petroindependiente joint venture in Venezuela, adding 20,000 bpd of heavy crude. The move follows a US license easing sanctions, but political and operational risks remain.
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BP has resumed production at its Petroindependiente joint venture in Venezuela, the company confirmed in a statement, marking the first major Western oil operator to restart operations since the Biden administration eased sanctions on the country's energy sector.
The project, a 50-50 partnership with Venezuela's state-owned PDVSA, had been idled since 2019 when the Trump administration imposed sweeping sanctions on the OPEC nation. Restarting it adds roughly 20,000 barrels per day of heavy crude output to BP's portfolio, the statement said.
The move follows a six-month license granted by the US Treasury in October that allowed Chevron to resume production and export. BP's return suggests other international oil companies may follow suit, though each faces its own negotiations with PDVSA.
Venezuela's oil output has fallen from 3 million barrels a day in the late 1990s to below 800,000 bpd in 2023, according to data from the OPEC Monthly Oil Market Report. The country holds the world's largest proven crude reserves but has struggled with underinvestment, corruption, and infrastructure decay.
For BP, the restart comes at a time when the supermajor is under pressure to replace declining production from mature assets in the North Sea and the Gulf of Mexico. The partnership gives it access to heavy crude that its refineries in Europe and the US are configured to process.
Risks remain. The US license runs for six months and can be revoked if Venezuela's government fails to meet political conditions. PDVSA's track record on payments and joint-venture management has been poor, and the infrastructure at the Petroindependiente field may require further investment.
Analysts at ClearView Energy said the restart is
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