Venezuela confirms force majeure

CARACAS, Jan 16 (Reuters) – Heavy crude upgrader Cerro Negro, a joint venture between Exxon Mobil, BP and Venezuelan state oil company PDVSA, on Tuesday confirmed it has declared force majeure as a result of OPEC production cuts ordered by Venezuelan authorities.

Venezuelan Energy Minister Rafael Ramirez on Monday said the project in the Orinoco oil belt had been unable to meet its supply commitments to the Chalmette refinery in Louisiana as a result of OPEC cuts.

“Cerro Negro confirms that it has declared force majeure given that the production curtailment instructed by the Ministry of Energy & Petroleum last week will impact our ability to comply with certain supply obligations,” the joint venture said in a statement.

Ramirez on Monday told a press conference that Venezuela’s OPEC production cuts would be based on export volumes of upgraded crude, rather than production of the heavy tar-like Orinoco.

Reuters