Venezuela’s Oil Revival Accelerates as Foreign Companies Return

Hundreds of oil executives convened in Venezuela's capital, Caracas, for the inaugural Venezuela International Oil & Gas Summit, marking the first such gathering in the country in decades. This event unfolded nine months after the U.S. ousted Nicolás Maduro, installed a U.S.-friendly administration, and announced plans to open Venezuela's oil reserves—the world's largest—to international investment.

The summit has drawn participation from major international firms, regional entities, and lesser-known petroleum companies, all eager to exploit Venezuela's vast oil potential.

In response to the U.S.-backed Venezuelan administration's revisions to the country's legal and fiscal hydrocarbon framework, foreign investors are finding the terms and conditions for investment more appealing. Several companies have already inked deals to explore and operate in the oil-rich Orinoco Belt, while others are considering similar agreements and investments, actively networking at the summit.

Over 250 companies, including over 600 senior-level delegates from more than 30 nations, have gathered for the summit, aiming to facilitate market re-entry and aid investment decisions.

ExxonMobil, for example, was initially skeptical about investing in Venezuela, stating in January that the legal and commercial constructs in place were "uninvestable." However, after the U.S. removed Maduro and implemented changes, Exxon is now on the cusp of signing a preliminary agreement to explore investments in several Venezuelan oil fields.

This potential deal would see Exxon return to the country after a two-decade hiatus, following the nationalization of its assets by Hugo Chavez in 2007, from which Exxon and ConocoPhillips are still seeking damages.

Other oil companies have been quicker to commit to Venezuela. Chevron has pledged over $7 billion in investments over the next five years to more than double its production in the country to about 600,000 barrels per day. Continental Resources recently signed a Memorandum of Understanding with PDVSA, the state-owned oil firm, to operate and develop the Ayacucho 2 Block in the Orinoco Belt, which holds an estimated 30 billion barrels of recoverable oil.

Italy's Eni has also entered the fray, signing a strategic contract to become the operator of the Junn-5 oil field, which contains 35 billion barrels of certified oil in place and currently produces around 12,000 barrels per day.

BP, ADNOC, XRG, and Qatar's UCC Oil and Gas Holding have secured licenses for offshore gas fields in Venezuela, signaling the country's growing attractiveness to international investors. At the summit, UCC's head of upstream operations, Erik Keskula, revealed talks to potentially venture into new fields in Venezuela. Meanwhile, Colombian-based GeoPark plans to invest $7 billion in the Bare oilfield, aiming to boost crude oil production to approximately 90,000 barrels per day by 2038, up from the current 11,000 barrels per day.

The oil conference in Venezuela is expected to yield additional deals and investment announcements, as the U.S. and the U.S.-backed Venezuelan authorities signal that the world's largest crude reserve holder is once again open for business.