Venezuela's Oil Infrastructure Largely Undamaged After Major Earthquake

Caracas. Following the powerful earthquake that struck on Thursday, Venezuela's important oil infrastructure appears to have largely escaped widespread damage. Initial reports suggest that most cities where serious damage occurred are not major oil production or refining centers, thus not significantly impacting the energy sector.

According to news agency Reuters, local authorities in Maracaibo city, near Lake Maracaibo which is significant for oil production, have not reported any casualties so far.

Venezuela is home to the world's largest proven oil reserves. Its economy is primarily dependent on crude oil exports. The country's economy has been affected by sanctions imposed by the US-led coalition in recent years, and its aging oil infrastructure has not seen sufficient investment.

Energy companies currently operating in the country are gathering information about their employees' status and assessing the condition of oil fields, refineries, and industrial plants.

British energy company Shell has stated that all its employees in Venezuela are safe and none have been injured. The company is studying the potential for gas field development there.

However, one source indicated that a prolonged power outage following the earthquake could temporarily affect crude oil production. It is estimated that production capacity may be impacted until power services are fully restored.

Venezuela's Ministry of Oil and the state-owned oil company PDVSA have not yet issued any official statement regarding the incident. Similarly, further information has been sought from Chevron, PDVSA's main foreign partner.