RoydadNaft –  Venezuela’s state-run Petroleos de Venezuela SA (PDVSA) has told some of its joint venture partners—such as Chevron’s Petropiar and Petroboscan, PetroMonagas, and China National Petroleum Corporation’s (CNPC) Petrolera Sinovensa—to cut back oil production, according to three sources familiar with the matter. The move is a response to an effective halt in exports that has sharply limited available storage capacity.

The request could involve shutting down oilfields or clusters of wells, the sources added, as onshore inventories swell and PDVSA runs short of diluents—lighter petroleum liquids needed to blend Venezuela’s heavy crude for shipment. Workers at some facilities were reported preparing to disconnect multiple well clusters after receiving the production cut request.  

The export paralysis follows U.S. sanctions and operational disruptions that have seen tankers unable to load or depart Venezuelan ports, and even previously authorized shipments by Chevron have stopped in recent days. With limited export outlets and storage tanks nearing capacity, PDVSA is now being forced to reduce output to avoid further bottlenecks.  

The developments heighten pressure on the politically unstable country, where oil revenues are critical to government finances, and underscore the growing economic impact of the export freeze.