Venezuela's Refineries Face Billions in Repairs Amid Crude Export Surge

The Paraguana Refining Center in Western Venezuela, once a symbol of the country's oil wealth and ambition to turn vast crude reserves into fuels and export revenue, now runs at a fraction of its capacity. The complex, which processes 955,000 barrels per day, has been plagued by decades of underinvestment, equipment failures, and shortages, leaving it in a state of disrepair described as 'ugly and rusty' by one worker.

The refinery's decline is not due to the recent earthquakes that struck Venezuela last month, which may have diverted resources and attention. Instead, the problems pre-date the quakes and are a result of years of neglect and poor maintenance. At the Amuay refinery, one of the facilities in the Paraguana complex, open-air waste pits are nearly full, residue seeps across pipelines, and valve stations are affected.

Fully restoring refining capacity would require at least $20 billion, according to experts, including Venezuelan energy analyst Oswaldo Felizzola. The cost is a significant barrier to investment, especially given that the government of interim President Delcy Rodriguez has little hope of raising money from foreign oil companies or the refineries themselves.