Venezuela expects fresh oil investments of some $1.4 billion this year, which would be up from $900 million last year, interim president Delcy Rodriguez said, as quoted by Reuters.
The investments will come from production-sharing agreements, the report noted, which are currently being discussed by the Venezuelan government and oil companies as part of an overhaul of the country’s oil legislation.
The U.S. government earlier this month issued licenses allowing limited oil-related work in Venezuela. Under those licenses, oilfield service companies are permitted to supply equipment and provide technical services connected to oil production and exports, and to receive payment for that work through approved channels. The measures do not lift U.S. sanctions, but they do allow specific projects to move forward under defined conditions.
These moves by Washington aim to open up Venezuela’s oil industry to external players although some remain cautious about the actual opportunities and the potential returns. Exxon notably expressed such caution during talks with the Trump administration about the potential return of U.S. majors to the South American country. CEO Darren Woods called Venezuela “uninvestable” at the moment, sparking the U.S. president’s anger. Chevron, on the other hand, signaled it would be happy to expand its operations in Venezuela.