The US is close to reaching a deal with Venezuela to establish a stake in 17 oil fields, potentially worth 90 billion barrels of the country’s vast reserves, reported Axios on Thursday.
Venezuela holds the world’s largest proven (1P) oil reserves, at over 300 billion barrels. It has been a member of OPEC since founding in 1960. For over half a century, the country has been one of the Organisation’s most consistent producers, outputting between 2.5 and 3.5 million bopd.
For the last decade, however, chronic underinvestment, loss of technical expertise, and decaying infrastructure – precipitated by Western sanctions – have led to an unprecedented decline in output.
Despite some recovery in recent years, production has dropped to consistently below or around 1 million bopd. On Friday, in light of talks with the US, Bloomberg reported that Venezuela was considering leaving OPEC – which would be the first time a founding member leaves the organisation.
Venezuela’s 2025 crude oil output was around 56 mcm – roughly equivalent to 970,000 bopd, but well below the output of OPEC colleagues Iran, Iraq, and Saudi Arabia, and other oil heavyweights like the US, Russia, and Canada.
BP, Shell, Hunt Oil, and SLB have all struck deals or resumed operations in the country since an American intervention captured and ousted President Nicolás Maduro in January. American Energy Secretary, Chris Wright, plans to travel to Venezuela in the upcoming week to discuss increasing production by US firms in the country.
Source: Theenergyyear.com