Venezuela's oil production rose slightly to 2.82 million barrels per day (bpd) in April from 2.8 million bpd in March, said on Tuesday the Ministry of Energy and Petroleum, Reuters reported. Venezuela said that exports of crude oil and products amounted to 2.56 million bpd in May, compared to 2.22 million bpd in April. Venezuela's oil company PDVSA and Chinese state-owned oil company PetroChina have renewed a 3% fuel oil contract for one year, a source close to the negotiations said Tuesday, Luciano Battistini from Platts reported. The contract, renewed on Saturday, allows PetroChina to load 230,000 barrels/day of Venezuelan 3% sulfur fuel oil with 380 CST viscosity and 300 ppm vanadium. The contract runs from July through December and it was done at the same level as the last contract, the source said. The level of that contract was not revealed and is not publicly known with some sources saying that the price is tied to a net back formula while other sources say it is tied to Platts Singapore 3.5% sulfur fuel oil assessments. PetroChina and PDVSA sources declined to comment on contract levels. The PetroChina-PDVSA fuel oil contract is also tied to a $4 billion credit line given to Venezuela by China's Development Bank, according to a second source. That money is due to be used for basic industries including housing, transportation, communication, education, agriculture, environment, science and technology, and energy. In addition, PDVSA is currently offering through a tender one or two 1 million-barrel cargoes of 3% sulfur fuel oil with 700 CST viscosity and 500 ppm vanadium, according to sources who received copies of the tender. That cargo is slated to load from the Caribbean island of Bonaire during a July 5-27 loading window. Usual buyers of that cargo are Glencore and Vitol, according to sources. The PDVSA fuel oil tenders have recently been done at a $1.75/b discount to Platts US Gulf Coast 3% sulfur fuel oil assessments, on an FOB basis, sources familiar with tender results said. Venezuela's oil production rose slightly to 2.82 million barrels per day (bpd) in April from 2.8 million bpd in March, said on Tuesday the Ministry of Energy and Petroleum, Reuters reported. Venezuela said that exports of crude oil and products amounted to 2.56 million bpd in May, compared to 2.22 million bpd in April. Rafael Ramírez, the Minister of Energy and Petroleum and president of state-run oil company Petróleos de Venezuela (Pdvsa), said recently that Venezuela would increase oil output by 50,000 bpd in 2011. This figure represents a 10 percent of the 500,000 bpd produced by joint ventures in Venezuela. Ramírez asked Pdvsa's partners to implement "remediation plans" to raise oil output immediately.

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