Venezuela has begun shutting down oil wells in a region that holds the world’s largest proven crude reserves, as mounting pressure from the United States tightens financial constraints on the country, according to a report by Bloomberg.
State-owned oil company Petróleos de Venezuela has started halting production at wells in the Orinoco Belt from 28 December, after government-owned refineries ran out of storage capacity and inventories swelled, the report said, citing two people familiar with the matter.
The Orinoco Belt, located along the southern edge of the eastern Orinoco River basin, contains the largest oil reserves in the world and forms the backbone of Venezuela’s energy sector.
According to the sources, PDVSA aims to cut output from the Orinoco Belt by at least 25 per cent, reducing production to about 500,000 barrels per day. That would represent a drop of roughly 15 per cent of Venezuela’s total oil output, currently estimated at around 1.1 million barrels per day.
The decision is seen as a major test for Venezuelan President Nicolás Maduro, who has sought to keep oil exports flowing despite years of US sanctions that have targeted the country’s main source of revenue.
Shutting down oil wells is considered a last resort because of the technical challenges involved and the high costs associated with restarting production, one of the sources said.
PDVSA and Venezuelan government officials did not immediately respond to requests for comment. One source said the production cut plan was approved on 23 December and scheduled to take effect five days later.
The plan prioritizes shutting wells in the Junín area of the Orinoco Belt, which produces extra-heavy crude, before extending reductions to the Ayacucho and Carabobo blocks, where oil is less dense.
China remains the primary buyer of Venezuelan crude. The United States imposed sweeping sanctions on Venezuela in 2019, and earlier this month President Donald Trump ordered a military-style blockade, describing it as necessary to curb drug trafficking networks.
The White House has instructed US forces to focus on enforcing restrictions on Venezuelan oil exports for at least the next two months, signaling that Washington is prioritizing economic pressure rather than direct military action against Caracas. In recent weeks, the United States Coast Guard has detained two oil tankers near Venezuelan waters.
The shutdowns underscore the growing strain on Venezuela’s oil industry as sanctions, storage limits and enforcement measures increasingly disrupt production in one of the world’s most resource-rich energy regions.
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