In Houston, the energy heart of the United States, the expectation of a possible return to the Venezuelan oil market has sparked the interest of executives, businessmen and investors who envision an unprecedented opportunity in the country with the largest proven crude oil reserves in the world.
The expectation of an eventual lifting of sanctions has ignited the race to secure a place in the next phase of Venezuelan oil development. In bars, meeting rooms and offices in the Texan financial center, meetings are multiplying between developers, drillers, lawyers and investors who are already plotting routes to insert themselves in a still uncertain scenario.
Halliburton, Pelorus and Amos Global plot their comeback
Matthew Goitia, head of Pelorus Terminals, is already preparing an investment that could exceed $1 billion to build and renovate marine terminals dedicated to blending and exporting crude oil, as well as shipping chemicals to Venezuela. The proposal includes tanks, docks, energy and an execution plan of up to a decade.
Jeff Miller, CEO of Halliburton, confirmed to analysts and investors that his company, which left Venezuela in 2020, is actively working to obtain the necessary licenses and return to the country. During a meeting at the White HouseMiller assured that Halliburton is very interested in returning and that he has a deep knowledge of the country, where he lived for several years.
Ali Moshiri, a former Chevron executive and current leader of Amos Global Energy, is also in the advanced stages of structuring investments of up to US$2 billion, in alliance with partners in Houston and New York.
Washington’s role and legal challenges
Although business interest is high, any U.S. company wishing to operate in the Venezuelan oil sector requires a license from the Treasury Department. In turn, many of the South American country’s domestic laws must be amended to ensure long-term ownership, stable contracts and legal certainty.
At the same time, international banks remain on the sidelines due to the sanctions in place. JP Hanson of investment bank Houlihan Lokey was emphatic in pointing out that investors demand clarity on asset holdings, legal protection and operational rules before committing capital.
On the other hand, from Caracas, the National Assembly has initiated debates on a reform to the hydrocarbons law that would allow private companies, both local and foreign, to directly operate oil fields in the country. oil fieldsout of the current model of mixed companies.
An oil rush based in Houston
From initiatives to reactivate abandoned wells to the construction of new port terminals, the vision of the players in Houston can be summed up as opportunity. Matthew Goitia estimates a 20% return when the systems are fully operational, with higher margins if a larger company decides to acquire the project.
Entry into Venezuela still depends on structural reforms, both legal and political. In the meantime, meetings between US businessmen and PDVSA representatives are already underway.
Source: Reuters
Photo: Shutterstock