Wildfire in Venezuela — Green alert

Supply-chain Risk Briefing: Venezuela Wildfires

1) Summary Wildfires broke out in Venezuela starting April 13th and continued through April 14th, assessed as medium-level risk. While specific damage scale or exact affected areas have not been confirmed, the potential impact on Venezuela's major industrial infrastructure requires monitoring.

2) Supply-chain impact

• Oil production facilities: Venezuela holds the world's largest oil reserves, and fires occurring near Orinoco River basin oil sands areas or refinery facilities could disrupt crude oil production and transportation
• Mineral resource transportation: Concerns over impact on mining and transportation infrastructure for iron ore, bauxite, diamonds and other minerals in the Guiana Highlands region of southeastern Venezuela
• Agricultural production: Potential supply-chain disruptions to exports if fires spread to major agricultural production areas for coffee, cocoa, sugar cane and other crops
• Port accessibility: Fire smoke causing visibility restrictions could temporarily disrupt vessel operations at Lake Maracaibo or Caribbean coastal ports

3) Watch points

• Fire suppression status: Venezuelan government's firefighting capacity, whether international assistance is requested, and time required for complete extinguishment
• Major infrastructure damage: Operational status and recovery schedules for PDVSA oil facilities, CVG state mining complex, and major road-rail networks