<article><p class="lead">Storage and export constraints have driven down Venezuela's oil production to 300,000-350,000 b/d in recent days, according to internal production reports issued by state-owned PdV.</p><p>Venezuela's crude production has been declining for years, with US oil sanctions accelerating the trend over the past 18 months. But the June data obtained by <i>Argus</i> brings output to its lowest level in almost nine decades except for a near shutdown during a 2002-03 oil strike, according to the oil ministry's recorded output history dating back to 1917.</p><p>Crude output in the Orinoco heavy oil belt, the source of most of Venezuela's production and long considered the anchor for future growth, is down to just 100,000-150,000 b/d.</p><p>PdV's mature eastern and western divisions combined are producing less than 200,000 b/d. </p><p>Venezuela produced an average of 550,000 b/d in May and 580,000 b/d in April, according to <i>Argus</i> estimates.</p><p>Venezuelan oil industry officials attribute the sharp decline so far in June to a <a href="https://www2.argusmedia.com/en/news/2113338-wave-of-venezuelan-oil-stalled-at-sea?backToResults=true">lack of storage and tankers</a> as well as naphtha used to dilute the Opec country's extra-heavy crude. </p><p>The downturn in reflected in PdV's joint ventures with foreign oil companies. PdV's PetroSinovensa blending venture with China's state-owned CNPC and PetroMonagas with a Russian state-owned partner were only producing 15,000 b/d apiece as of 13 June, compared with around 80,000 b/d earlier this year.</p><p>Other joint ventures, including PetroIndependencia with Chevron and PetroCarabobo with Spain's Repsol and Indian partners were down completely. PdV's PetroPiar venture with Chevron was running at around 30,000 b/d. In PdV's western division, PdV's PetroBoscan venture with Chevron and its PetroZamora partnership with a Russian company were off line. </p></article>
