Venezuela oil output breaks through 1.2 million barrels a day

Following the easing brought by OFAC energy licenses, PDVSA reported an 18.5% increase in its output this past quarter, reaching 1,250,000 barrels per day thanks to new alliances with American, European and Indian companies.

The debate over Venezuela's energy future gained momentum on September 20, 2026, highlighting the gap between the country's subsoil resources and the limits of its surface infrastructure, according to the outlet El Pitazo. While the government stresses that Venezuela has the largest crude reserves in the world, sector analysts note that realizing that extraction capacity will require large investments.

In this context of seeking capital, the American company Continental Resources and the state-owned Pdvsa signed a memorandum of understanding to operate the Ayacucho 2 block in the Faja del Orinoco, according to reports from El Nacional. The agreement aims to bring together technology and private resources to revive an area that has suffered severe deterioration of its facilities.

Likewise, the state broadcaster Telesur reported that Pdvsa agreed on new investment mechanisms with the French multinational TotalEnergies. This alliance was designed under the framework of the Organic Hydrocarbons Law (Ley Orgánica de Hidrocarburos), the legal instrument that regulates the participation of foreign companies in Venezuela's energy sector.

Meanwhile, the country's oil production reached 1.2 million barrels per day in August 2026, according to OPEC data. This level of extraction coincides with plans to open the sector to international capital, although the sustainability of this growth will depend on whether the memoranda turn into concrete operating projects.