Venezuela seeks more investment in energy sector as it reforms hydrocarbon law

Show caption: Paula Vera, Venezuela's minister for hydrocarbons, speaking …

Sanctions remain chief obstacle to large-scale investment, says minister

• Venezuela is seeking greater international investment following reforms to its hydrocarbon law, enabling private participation in exploration and production activities.
• Nicolas Maduro was captured and arrested in a US-led operation in January, prompting a shift in control over Venezuela's oil industry.
• Chevron plans to invest $7 billion to double its Venezuelan output to 600,000 barrels per day over seven years.
• Venezuela holds the world's largest proven oil reserves and produces approximately 1.1 million barrels per day, with over 67 per cent classified as heavy crude.
• "The new framework allows private participation in primary activities through mechanisms such as the production and exploration contracts," Venezuela's hydrocarbons minister said.

Venezuela is seeking more international investment in its energy sector, with the partial reform of the country’s hydrocarbon law representing a “paradigm shift”, its hydrocarbons minister said on Tuesday.

“The new framework allows private participation in primary activities through mechanisms such as the production and exploration contracts and provides guarantees such as dispute resolution and different frameworks that improve conditions for attracting this investment,” Paula Henao told delegates at Adipec in Abu Dhabi.

Venezuela's oil sector suffered for years as a result of sanctions that hampered the flow of investment into the country. The oil-rich nation is seeking more investment since the ousting of president Nicolas Maduro earlier this year.

Mr Maduro was captured and arrested in a US-led operation in January, with Donald Trump's administration taking control of Venezuela's oil industry.

“The main obstacles to large-scale investment continue to be sanctions,” Ms Henao said. The country has signed 80 commercial agreements with international companies over the past year despite continuing challenges, she added.

In September, Venezuela signed an energy agreement with France’s TotalEnergies. Details on the scope and value of the agreement were not disclosed.

US company Chevron has also revealed plans to invest $7 billion to double its Venezuelan oil production to 600,000 barrels per day over seven years, while North American Blue Energy Partners plans to invest up to $100 billion across 17 Venezuelan oil projects.

US oil producer Continental Resources also signed a memorandum of understanding with the state-owned oil and gas company PDVSA to jointly develop the Ayacucho 2 block in Venezuela’s Orinoco Belt, one of the world’s largest deposits of heavy crude.

Abu Dhabi’s XRG, Adnoc's international energy investment unit, was awarded an offshore natural gas project in the South American country alongside global oil major bp and Qatar’s UCC in August.

Venezuela is one of Opec’s founding members, alongside Saudi Arabia, Iran, Iraq and Kuwait. Home to the world’s largest proven oil reserves, the country produces about 1.1 million bpd of crude, with most exports flowing to China and India, according to Rystad Energy. While that accounts for just around 1 per cent of global oil trade, the output is distinctive, with more than 67 per cent classified as heavy crude.

Updated:

November 03, 2026, 10:04 AM