Iranian condensate used as a diluent for heavy crude is helping to create small boosts in Venezuelan oil production this month, oil industry sources tell Argus.
September production, estimated by PdV at around 653,000 b/d, will increase to above 700,000 b/d this month almost solely because of the use of Iranian condensate-diluent, analysts and the country representative of a foreign oil company told Argus.
The consultancy Gas Energy in Caracas estimates Venezuelan production of 675,000 b/d for October, based on current levels.
"So far, in October, we have seen days at 750,000 b/d, a full week even, and that is right after the arrival of the diluent," a foreign oil company representative in Venezuela told Argus. "Faja alone jumped by more than 100,000 b/d."
Output in the first days of October reached 485,000 b/d for the main oil producing area of the Orinoco belt, also referred to as Faja, 190,000 b/d for the Oriente zone to the east, 80,000 b/d in the Occidente to the west centered on Zulia state, and 20,000 b/d from other areas, the source said. Output from other areas has increased recently and could compensate for a longer-term decline in the older Zulia fields.
Yet others warn that the increase will not be sustained.
"From Iran, we had an arrival in September, sure," one analyst in Caracas said, referring to diluent. "But that is it, and this needs to be consistent."
"In the Faja, they bring the condensate practically to the wellhead, and mix it with the heavy crude and that is how they have been transporting it," a source with the Venezuelan oil chamber said.
The last tracked tanker from Iran to Venezuela was the Serena carrying 1.95mn bl of condensate that arrived at the Jose port on 15 August, according to data from oil analytics firm Vortexa.
