<article><p class="lead">Venezuelan state-owned PdV's Sinovensa and PetroPiar joint ventures resumed operations yesterday after a ruptured natural gas line was repaired, but a looming Chinese tax threatens to slow operations again next month.</p><p>Sinovensa, PdV's Orinoco crude blending joint venture with Chinese state-owned CNPC, is currently producing about 45,000 b/d of 16°API Merey blend and should reach 75,000 b/d by week's end, a PdV official at the facility tells <i>Argus</i>. </p><p>PdV's PetroPiar Orinoco upgrading joint venture with partner Chevron is producing about 70,000 b/d of synthetic Special Hamaca Blend and aims to reach about 100,000 b/d by early June, a PdV manager at the upgrader said.</p><p>Plans to load 1mn bl of SHB on 28-30 May have been reprogrammed for the first week of June.</p><p>PdV is using storage tanks at PetroPiar and two other upgraders that are out of service — PetroMonagas and Petro San Felix — to support production and logistics.</p><p>The PetroPiar upgrader halted production when the <a href="https://direct.argusmedia.com/newsandanalysis/article/2216473?keywords=pdv%20gas%20line">gas line broke</a> on 17 May. It continued running in recirculation mode during repairs.</p><p>A Jose terminal supervisor tells <i>Argus</i> the resumption of blending at Sinovensa and upgrading at PetroPiar will accelerate loadings and reduce a tanker backlog.</p><p>Among the Asia-bound VLCC and Suezmax tankers waiting to load or that have partially loaded at Jose are <i>Maya</i>, <i>Xing Yei</i>, <i>Beyong</i> and <i>Eagle 1</i>, according to PdV's latest terminal roster.</p><p>But PdV seems unlikely to meet its ambitious 600,000 b/d export target for May because of faulty loading equipment and a <a href="https://www2.argusmedia.com/en/news/2216651-pdv-soaking-up-condensate-to-sustain-merey-output">shortage of diluent</a> needed to transport and process extra-heavy Orinoco crude. </p><p>More pressing is a new $30/bl Chinese <a href="https://www2.argusmedia.com/en/news/2217107-venezuela-scrambling-to-load-oil-ahead-of-china-tax?backToResults=true&amp;selectedMarket=Crude%20oil">tax on diluted bitumen</a>, the category under which Venezuelan crude is imported into China, the Opec country's main market. The tax takes effect on 12 June.</p><p>China emerged as the top destination for Venezuelan barrels after the US imposed <a href="https://www2.argusmedia.com/en/news/2216600-us-tamps-down-talk-of-venezuela-sanctions-relief">oil sanctions</a> on Caracas in January 2019.</p></article>
