The largest US oil companies are analyzing and discussing their return to the Venezuelan energy market with an investment of up to $100 billion. This announcement is part of the meeting held at the White House with executives from the world’s leading oil companies to discuss their participation in the process of modernizing Venezuela’s oil infrastructure.
An attractive market, but with conditions
The project was presented as a joint international investment effort to restore the operating capacity of the Venezuelan oilfields, whose production has fallen to historic lows after years of disinvestment and operating limitations. If realized, the initiative would include the participation of leading firms such as Chevron, ExxonMobil and ConocoPhillips.
However, the companies have expressed their interest conditioned on the existence of clear legal and contractual guarantees, as well as mechanisms to ensure the protection of the invested capital. Ongoing discussions revolve around agreements that allow these companies to operate under a stable regulatory environment and with medium and long-term return projections.
Chevron, currently the only U.S. company with an active license in the country, has already taken steps to expand its operations and facilitate the shipment of crude to U.S. refineries, according to industry sources.
Plan projections
Energy sector experts predict that, with sustained investment, Venezuela could increase its production by hundreds of thousands of barrels per day in the next few years. Reaching figures above one million barrels will depend on the flow of capital, the efficiency of technical execution and the safety of field operations.
One of the biggest challenges will be the condition of the oil facilities, as it is estimated that much of the infrastructure requires technological upgrades, repair of pumping systems, and adaptation for handling extra-heavy crude oil, which is characteristic of Venezuelan oil.
The initial estimate for this industrial re-launching round will be divided into stages that include diagnosis, recovery, drilling, logistics and commercialization. As part of the plan, the shipment of U.S. light crude is contemplated to blend it with Venezuelan crude, thus facilitating its processing in refineries outside the country.
Growing interest in Venezuelan crude oil
Venezuela’s energy potential is once again on the radar of U.S. oil companies thanks to its vast reserves and the possibility of diversifying supply sources for the North American market. It is a strategic bet that could redefine the energy map of the region in the coming years.
Beyond the volume of investment, this plan represents a significant move in the global energy context. The possibility of adding millions of additional barrels to the market may have important effects on the balance between supply and demand, at a time when the industry is seeking stability and predictability.
Source: El Colombino
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