The return of Venezuelan oil to the global market is underway, but without promises of security from the U.S. government. This was confirmed by high-level officials meeting with representatives of the energy sector, who were warned that they will have to assume the operational and legal risk if they decide to invest in Venezuela.
Oil and gas companies are already accustomed to operating in difficult environments and must manage that risk on their own.
U.S. Energy Secretary Chris Wright said during a television interview.
With these statements, Washington clarifies that its policy of reopening towards Venezuela will not include physical or legal support on the ground.
Venezuelan oil at a discount but with no guarantees
In recent years, the international energy industry has faced a series of challenges when operating in Venezuela: from nationalizations and contract rewrites to payment delays and lack of legal guarantees. All of this has dampened appetite for long-cycle investments, despite the growing need for alternative sources of crude oil.
In the current scenario, the flow of Venezuelan barrels is not being reactivated through exploration projects or new operations, but rather through commercial agreements with significant discounts. Intermediaries such as Vitol have facilitated the sale of heavy crude oil to refineries in the US Gulf, including companies such as Valero and Phillips 66, which are taking advantage of differentials of up to $9 per barrel compared to Brent.
Oil investments face legal obstacles in Venezuela
This type of oil is particularly profitable for U.S. plants designed to process sour crude. Prior to the sanctions imposed in 2019, these facilities relied heavily on Venezuelan crude. They now seek to reactivate those channels without committing to direct investments that lack legal cover.
From the American Petroleum Institute (API), its director Mike Sommers has reiterated that the industry continues to demand clear conditions for investment: valid contracts, legal protection and transparent fiscal rules. As long as this is not guaranteed, the participation of foreign capital will continue to be limited, despite the new political focus from Washington.
The partial reopening represents an economic opportunity for both Caracas and U.S. refiners. However, the lack of guarantees underscores the fragility of the Venezuelan environment for long-term business, a factor that, for now, continues to dampen the enthusiasm of international investors.
Source: Bloomberg Television
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