Venezuela signs TotalEnergies deal in push for foreign investment into energy sector

Venezuela has inked a significant energy pact with TotalEnergies, the latest in a string of deals aimed at luring foreign investment into its oil and gas industry. The accord, inked by President Delcy Rodríguez on Saturday at Miraflores Palace, was between state-owned PDVSA and TotalEnergies E&P New Ventures. The details of the agreement, branded an energy cooperation pact, remain undisclosed.

Rodríguez stated that recent changes to Venezuela's hydrocarbons law create a legal framework to entice new investment. The agreement follows a push by Caracas to attract international energy firms, following the ousting of former President Nicolás Maduro in January. US firm Chevron aims to double its production by $7 billion, while Blue Energy Partners plans to invest up to $100 billion in 17 Venezuelan projects.

Additionally, Venezuela has opened its natural gas sector to new foreign investment, with Abu Dhabi’s XRG becoming an equal partner in a gas field. These moves come as the US seeks a larger stake in Venezuela's energy sector, with President Trump claiming an agreement could secure control over 65 billion barrels of oil reserves.

However, experts caution that boosting Venezuelan production could take years due to underinvestment and the complexity of handling heavy crude. With about 303 billion barrels of proven crude reserves, Venezuela boasts the world's largest oil reserves.