The extension for Petropiar will apply for the period 2033-2047, once the current association expires, under a plan to drill up to 386 wells in the area, according to the document presented to the National Assembly, seen by Reuters. During the 15-year extension, crude production is set to increase to 150,000 bpd from current output of about 110,000 bpd. About $2.39 billion in investment and another $8 billion in operational expenses were planned as part of the request, according to the deputy minister’s presentation. The National Assembly is expected to continue discussing and approve the partnership extension in the coming days.
All the joint ventures produce and export crude under a license granted by the U.S. Treasury Department to Chevron in late 2022 as an exemption to the U.S. sanctions on the South American country. But more investment is still needed to reach production levels before oil sanctions were first imposed in 2019.