Sources say that Venezuela's Orinoco Belt is loosening, which helps to boost oil production to 1 million barrels per day.

Sources close to the operations reported that Venezuela's state-owned?oil firm PDVSA reversed the majority of output cuts in its own oilfields and joint ventures located along the Orinoco Belt. Total production has increased to close to one million barrels a day.

OPEC member Venezuela was forced to reduce its crude production after Washington imposed an oil blockade in December in order to put pressure on Nicolas Maduro. Maduro's capture at the beginning of January resulted in the U.S. overseen government of interim President Delcy Rodriguez.

Millions of barrels worth of exportable crude oil were left in Venezuelan tanks and vessels due to the strict U.S. ban, which forced PDVSA to reduce its output. However, exports have recently returned to near-normal levels.

Sources claim that the Orinoco region is now producing slightly more than 500,000 bpd, after weekend increases at several projects. This is over 100,000 bpd higher than early January.

"We began increasing production at Petromonagas on Saturday and Sunday. The additional barrels are set to reach 85,000 bpd by today," said an employee?from one five joint ventures controlled by PDVSA in the vast Orinoco Belt.

Independent analysts reported that Venezuela's total oil production fell to 880,000 bpd by early January. The Orinoco contributed only 410,000 bpd compared to 1.16 million bpd at the end of November.

Last month, the U.S. granted Trafigura and Vitol initial licenses to export and sell millions of barrels Venezuelan oil as part of an agreement between Washington and Caracas worth $2 billion.

The main source of income for the country is oil exports. Officials from the United States and Venezuela have confirmed that since the agreement, proceeds of sales are being sent to a U.S. controlled fund in Qatar.

In recent weeks, the U.S. Treasury Department issued general licenses that allow U.S. firms to export Venezuelan oil and supply it with fuel. Separate sources said that these licenses are likely to be followed up by others?to explore and produce oil in Venezuela.

Sources said that the U.S.?licenses helped untangle the exports by releasing crude and fuel from inventory. They also provided much-needed diluents to Venezuela's heavy oil, allowing PDVSA to increase production, especially in the Orinoco Belt.

Sources said that U.S. Energy Sec. Chris Wright will visit Caracas next week to meet with Venezuelan officials and discuss Washington's $100-billion reconstruction plan for Venezuela after Maduro was captured. Staff and Marianna Pararaga, Nathan Crooks and Julia Symmes Cobb edited by Alexander Smith and Nathan Crooks.

(source: Reuters)