(Reuters) - Venezuelan state company PDVSA is letting some joint venture partners take over the day-to-day operation of oilfields as its own capacity dwindles due to sanctions and a lack of cash and staff, according to a former oil minister, an opposition lawmaker and industry sources.
Crude production by PDVSA and its joint ventures has fallen to about a third of its peak 20 years ago. The steepest fall has occurred since military officials with no oil industry experience took over PDVSA's management in late 2017 and Washington imposed sanctions on the state-run company in early 2019 in a bid to oust socialist President Nicolas Maduro.
Maduro's government and the opposition last year discussed allowing partners in PDVSA-led joint ventures to operate the oilfields, which would reverse a legal requirement that PDVSA control the operations. That could give Maduro more breathing room by encouraging fresh investment in PDVSA's operations, potentially boosting oil revenues. However, it would be controversial after late President Hugo Chavez, an iconic figure to many Venezuelans, made nationalization a flagship policy.
Jan. 4, 2020, 5:51 a.m. ET - REUTERS (NYT)
