Venezuela’s Oil Revival Accelerates as Foreign Companies Return
Oil and Gas Production Climbs Despite Extreme Oil Price Volatility Russia’s mounting casualties could force… What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… Hundreds of oil executives have flocked to Venezuela’s capital city of Caracas this week for the first major industry event in the country in decades.
The Venezuela International Oil & Gas Summit is taking place nine months after the U.S.
captured Nicolas Maduro, installed a U.S.-friendly administration, and vowed to open Venezuela’s oil reserves – the world’s biggest – to development by international companies.
The sold-out event has attracted executives from international majors, regional companies, and relatively unknown petroleum firms, all willing to tap Venezuela’s vast oil riches.
The interim Venezuelan administration, backed by the U.S., has amended the legal and fiscal hydrocarbon framework, making the terms and conditions for investing in Venezuela more attractive for foreign players who are now not bound by sanctions in their operations.
Some companies have already signed deals with Venezuela to explore and operate blocks in the oil-rich Orinoco Belt.
Others are considering agreements and investments and are networking at the Venezuela International Oil & Gas Summit.
More than 250 companies are attending theevent, which has welcomed more than 600 senior-level delegates from more than 30 countries.
The summit aims to enable market re-entry for companies and support investment decisions.
The change in Venezuela’s oil fortunes could be best exemplified by ExxonMobil.
extracted Maduro out of Venezuela in early January, Exxon’s CEO Darren Woodstoldan oil executives meeting with President Trump, “If we look at the legal and commercial constructs—frameworks—in place today in Venezuela, today it’s uninvestable.” Since January, Venezuela has made changes to the legal, regulatory, and commercial frameworks and has started to attract a broad pool of investors in its oil industry.
Exxon is nearing the signing of a preliminary agreement to explore investments in several Venezuelan oil fields, the Wall Street Journalreportedearlier this month, citing sources with knowledge of the discussions.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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