By Collin Eaton and Luc Cohen
HOUSTON/CARACAS Aug 14 (Reuters) - The United States lastweek imposed a sweeping freeze on Venezuelan government assetsin U.S. territory and threatened to sanction any company thatworks with socialist President Nicolas Maduro's government, asthe Trump administration ratcheted up its bid to force Maduroout.
In January the United States imposed sanctions onVenezuela's most important global business - producing andselling crude oil, which accounts for more than 95 percent ofthe country's export revenue. U.S. refineries had beenVenezuela's top customer, and output has fallen by some 40percent since then.
The United States and many Western governments haverecognized Venezuelan opposition leader Juan Guaido as thecountry's rightful head of state.
Oil industry sources warned that if Washington followsthrough on its threat to sanction non-U.S. companies that dobusiness with state oil company PDVSA, production could collapsefurther - increasing the squeeze on Maduro.
HOW MUCH OIL IS VENEZUELA CURRENTLY PRODUCING?
Venezuela's crude production was between 734,000 and 1.05million barrels per day (bpd) in June, according to secondarysources and self-reported figures quoted by the Organization ofthe Petroleum Exporting Countries (OPEC) in its July oil marketreport. That compared to output of 3 million bpd at the turn ofthe century.
HOW MUCH CRUDE AND REFINED PRODUCTS IS IT EXPORTING?
Venezuela exported nearly 933,000 bpd of crude and refinedproducts in July, down 17.5% from June, according to data fromPDVSA and Refinitiv Eikon. Exports sank 40% in February, thefirst full month after the sanctions were imposed.
WHERE IS THAT OIL GOING?
The United States, India and China were Venezuela's biggestcustomers prior to sanctions, with the United States the biggestcash buyer.
India and China have accounted for most of Venezuela's crudeexports since sanctions took effect. Russia's state-run energycompany Rosneft took more than 46% of the country'sshipments in July with some 432,000 bpd of crude resold to finalcustomers in Asia.
HOW DO U.S. SANCTIONS AFFECT THE SECTOR?
The January sanctions prevented U.S. companies from dealingwith PDVSA, and a clause that became effective in April blockedPDVSA from operating in the U.S. financial system.
The asset freeze announced in early August threatenssanctions against any company deemed by Washington to be"materially assisting" Venezuela's government.
While the January sanctions included similar language, U.S.national security adviser John Bolton last week said the newround gave companies a choice between doing business with Maduroor the United States. That has spooked PDVSA's joint venturepartners and customers, who are seeking clarity on the measure,sources said.
WHAT ABOUT U.S. IMPORTS?
U.S. imports of Venezuelan crude have collapsed to zero inthe wake of sanctions. In the week ended Jan. 25, just beforesanctions were announced, U.S. refineries imported 587,000 bpd.
WHY IS VENEZUELAN CRUDE SO IMPORTANT?
Heavy crude supplies of the kind Venezuela pumps areconstrained worldwide. Large producers, such as Canada andMexico, are unable to lift exports to replace the lost barrels,and smaller producers, including Colombia and Ecuador, simply donot pump enough to ease the global shortfall.
Complex U.S. Gulf Coast refiners use heavy crude as part ofa mix to create high-margin distillate products.
WHO WERE THE BIGGEST U.S. CUSTOMERS?
U.S. refiner Citgo Petroleum, a subsidiary of PDVSA,imported more than 175,800 bpd of Venezuelan oil in 2018,according to Refinitiv Eikon.
It was followed by Valero Energy Corp, whichimported about 166,000 bpd last year, and oil major Chevron Corp, with about 83,000 bpd.
WHERE ARE U.S. REFINERS FINDING REPLACEMENT BARRELS?
Chevron, Valero and Citgo have turned to producers of heavycrude in Colombia, Iraq, Saudi Arabia and Canada, as well assour grades produced in the U.S. Gulf Coast by BP PLC andRoyal Dutch Shell PLC, traders and brokers said.
Valero has said it has used domestic blends, Canadian crudeand a mix of other grades, including crude from Brazil. The U.S.refiners have also secured more crude from West Africa as areplacement, traders said.
WHAT WILL IT TAKE TO REPAIR THE VENEZUELAN OIL INDUSTRY?
Venezuela might open its oil industry to foreign investmentand limit the role of PDVSA, which currently controls all jointventures in the OPEC-member nation, said Ricardo Hausmann,Guaido's representative before the Inter-American DevelopmentBank.
WHAT ELSE IS VENEZUELA EXPORTING?
Venezuela has stepped up shipments of gold to othercountries, sending more than $900 million to Turkey in 2018,according to Turkish government data and trade reports.
Caracas is using some proceeds from those sales to buyTurkish consumer goods, according to opposition legislatorCarlos Paparoni. Turkish pasta and powdered milk are now staplesin Maduro's subsidized food program. Trade between the twonations grew eightfold last year.(Reporting by Collin Eaton in Houston and Luc Cohen in CaracasAdditional reporting by Marianna Parraga in Mexico CityEditing by Leslie Adler)
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