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

Venezuela has inked a deal with French energy giant TotalEnergies, joining a wave of international investments aimed at reviving the country's oil and gas industry, according to a statement from the presidential press office. President Delcy Rodríguez witnessed the signing of a memorandum of understanding between state-owned PDVSA and TotalEnergies E&P New Ventures at the Miraflores Palace in Caracas on Saturday.

The agreement, described by the government as an energy cooperation pact, was signed by PDVSA president Héctor Obregón and TotalEnergies' senior vice president for the Americas, Francisco Javier Rielo. The specifics of the scope or value of the deal were not disclosed.

Recent changes to Venezuela's hydrocarbons law, approved earlier this year, are intended to create a legal framework that can attract new investment into the country, Rodríguez has said. The move comes amid a broader effort to entice international energy firms following the ousting of former President Nicolás Maduro in January.

US company Chevron has pledged $7 billion to boost its production capacity in Venezuela, aiming to double output to 600,000 barrels per day over seven years. Canadian firm Blue Energy Partners is also set to invest up to $100 billion across 17 Venezuelan oil projects. Recently, Abu Dhabi's XRG entered the market as an equal partner in the offshore Loran gas field, joining BP and Qatar's UCC.

The deals follow the US's increased interest in Venezuela's energy sector. President Donald Trump indicated that a deal with Caracas would grant a US-backed venture control over approximately 65 billion barrels of Venezuelan oil reserves. He also proposed using Venezuelan crude to replenish the US Strategic Petroleum Reserve. However, experts suggest that substantially increasing Venezuelan production may take years due to underinvestment and the high cost of developing and processing the country's heavy crude. Venezuela boasts about 303 billion barrels of proven crude reserves, the world's largest.