Exclusive-Increased Orinoco Belt output boosts Venezuela's oil production to 1 million bpd, sources say

By Marianna Parraga Feb 9 (Reuters) – Venezuela's state oil company PDVSA has reversed most of the output cuts it had ordered at its own oilfields and joint ventures in the country's main crude region, the Orinoco Belt, boosting the nation's total production close to 1 million barrels per day (bpd), sources close to operations said. The OPEC country had to cut back crude output, its main source of revenue, following an oil blockade in December imposed by Washington to pressure President Nicolas Maduro, who was captured in early January leading to the U.S.-overseen government of interim President Delcy Rodriguez. The strict U.S. blockade left millions of barrels of exportable crude stuck at onshore tanks and vessels in the country, forcing output cuts that PDVSA has recently begun to reverse as exports bounce close to normal levels. The Orinoco region is now producing slightly over 500,000 bpd after increases over the weekend at several projects, the sources said, more than 100,000 bpd above early January. Trading houses Trafigura and Vitol were granted initial U.S. licenses last month to export and market millions of barrels of Venezuelan oil as part of a flagship $2 billion supply agreement between Caracas and Washington. The U.S. Treasury Department also has issued general licenses in recent weeks broadly allowing U.S. companies to export Venezuelan oil and provide the country with fuel, which are expected to be followed by other authorizations for exploring and producing oil in the country, separate sources have said. The U.S. licenses have helped untangling exports, freeing crude and fuel that were in inventory, providing much needed diluents for Venezuela's extra heavy oil and allowing PDVSA to boost production, particularly at the Orinoco Belt, the sources said. (Reporting by Reuters Staff and Marianna Parraga; Editing by Nathan Crooks and Nick Zieminski)

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