Second-Largest Oil Refinery In Venezuela Suspends Activities After Explosion And Fire

An explosion at Venezuela's second-largest oil refinery has caused it to suspend activities. Reuters reports that the fire at the Cardon facility in Punto Fijo, Falcón state, started in a gas line. The facility can process 300,000 barrels of oil per day when operational. pic.twitter.com/5Y5q3gxbBK

— Al Jazeera English (@AJEnglish) October 7, 2026

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Eight sources with knowledge of the matter earlier confirmed to Reuters that a fire had broken out at the facility, part ⁠of PDVSA’s 955,000-bpd Paraguana Refining Center, Venezuela’s largest complex.

Two of the sources said the fire started at a gas line to the refinery’s diesel hydrotreater, forcing the shutdown of the entire facility, including boilers.

In its evening statement, PDVSA said it quickly contained the blaze caused by a rupture at about 3:25 p.m. in the natural gas line feeding the boilers. There were no injuries or major damage, ‌it ⁠added, and the incident is being investigated.

Fires, power interruptions and outages are common at the company’s facilities, and can affect supply of fuel essential to the domestic market, such as gasoline and diesel.

Huge columns of flames ⁠and smoke billowed from the refinery in videos posted on social media. Later photographs from neighbors showed firefighters in the facility and the flames ⁠put out.

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White House says oil from Venezuela deal could hit US reserves in November
Sept 2 (Reuters) – White House spokeswoman Anna Kelly on Wednesday told Fox News' 'America Reports' program that oil from a deal struck with Venezuela will probably hit reserves in the United States in Nov

— Reuters Venezuela (@ReutersVzla) September 2, 2026

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On top of the Pentagon equity stake, the State Department has the right to purchase 20% of NABEP’s oil output at the cost of production rather than market price. The U.S. agency also has the right to first refusal for the remaining 80% of NABEP’s production.

The U.S. government can also veto appointments to NABEP’s board of directors and a majority of the board must be U.S. citizens. The deal with NABEP is governed by U.S. law and subject to the jurisdiction of its courts.

“This is straight up a state-owned enterprise,” said Scott Lincicome, an international trade law expert at the Cato Institute. “De facto control of 100% of output at cost — that’s ownership.”

The oil bought by the U.S. on favorable terms will help refill the Strategic Petroleum Reserve and “provide supply for military and other sensitive uses,” the White House has said.

The Trump administration does not anticipate using the U.S. right of first refusal to the other 80% of NABEP’s production, a U.S. official told reporters on a call Tuesday.

The first refusal right is a long-term insurance policy that the U.S. would use when it faces a crisis, said the official, who spoke on the condition of anonymity to discuss the deal freely.

The deal is “first and foremost about geopolitics,” the official said. “This was an opportunity to secure fields that had largely been under the influence of Chinese and Russian companies.”

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