(Oil Price)– A massive fire has erupted at a crude oil upgrader project in Venezuela after an explosion was heard near the distillation tower, workers on site and sources at state oil firm PDVSA told Reuters.
The Petrocedeno project in Venezuela’s Orinoco Belt, operational since 2000, was one of the four original projects in the heavy crude oil belt in the world’s biggest holder of crude resources.
Petrocedeno, operated by PDVSA, extracts extra-heavy oil and upgrades it into a lighter synthetic crude for export. Petrocedeno produces 8.3° API gravity crude at the field, which is upgraded to a 32° API synthetic crude that is being exported.
It was the company’s crude upgrader project where the fire broke out. Workers were evacuated, and as of early Thursday, authorities haven’t reported injuries yet.
The incident occurred in Venezuela’s heavy oil-producing region amid rising tensions between the Trump Administration and Venezuela’s Nicolas Maduro.
In recent days, the U.S. has moved the USS Gerald R. Ford, the world’s most advanced aircraft carrier, close to Venezuela, and U.S. President Donald Trump earlier this week said he would not rule out sending U.S. troops to Venezuela.
“No, I don’t rule out that. I don’t rule out anything. We just have to take care of Venezuela,” President Trump said on Monday.
Hours after the President’s comments, Maduro said that he is “ready” to hold face-to-face talks with representatives of the Trump Administration.
Venezuela’s economy is in tatters, putting additional pressure on the country’s embattled leader Maduro, at a time when the U.S. Administration is increasing its military presence in the Caribbean region and striking alleged drug boats offshore the world’s largest crude oil reserves holder.
The economic collapse of Venezuela, exacerbated by the U.S. sanctions on its oil industry and exports, has left many Venezuelans increasingly disillusioned with the regime and supporting an ousting of Maduro.
By Charles Kennedy for Oilprice.com
