Key facts
- Venezuela is prioritizing exploration of lighter crude and condensate resources.
- Lighter crude is crucial for diluting Venezuela's heavy and extra-heavy oil.
- The country produces a limited volume of lighter crude, relying on imports for blending.
- Venezuela aims to significantly increase its total oil output by 2030.
- Repsol plans to invest $400 million to boost output from its Petroquiriquire asset.
Venezuela, primarily known for its heavy and extra-heavy crude reserves, is shifting its exploration focus towards lighter crude and condensate resources to enhance overall production. Energy Minister Paula Henao stated that increased exploration efforts are underway to leverage these lighter crudes. Lighter crude is crucial as a diluent for the production of heavy and extra-heavy crudes, a role for which Venezuela currently produces only about 200,000-240,000 barrels per day (b/d) of lighter crude, out of a total output of 1.2 million b/d. This deficit necessitates imports, with the U.S. supplying approximately 75,000 b/d of naphtha for blending so far in 2026. To meet its ambitious goal of increasing output to 3 million b/d by 2030, Venezuela will require more than double its current naphtha imports, and lighter crude can help fill this gap. Argus Consulting estimates that every 10,000 b/d shortfall in naphtha can reduce crude export capacity by 25,000–30,000 b/d.
While 86% of Venezuela's vast reserves of 303 billion barrels are extra-heavy crude located in the Orinoco oil belt, lighter reserves do exist. The Tomoporo field, nicknamed the "giant of the west," located in Zulia and Trujillo states, has been a long-standing hope for increased lighter crude production. This field, which includes onshore and offshore wells, holds reserves of 2.5-2.65 billion barrels of crude around 32° API and condensate, along with associated gas. However, production at Tomoporo has significantly declined from about 150,000 b/d in 2004 to 50,000-55,000 b/d currently, according to PdV data. Industry sources attribute this decline to a lack of investment, mismanagement, and equipment theft.
Spain's Repsol has been the main foreign operator in the Tomoporo field since 2004, though U.S. sanctions previously limited its operations. In April, under relaxed U.S. sanctions, Repsol agreed to assume operational control of its Petroquiriquire oil asset, which includes the Tomoporo and La Ceiba fields. Repsol holds a 40% stake, with PdV holding the remaining 60%. Repsol announced plans in 2024 to invest $400 million to rehabilitate existing wells and increase output by 20,000 b/d.