Venezuela oil industry investment and policy

Venezuela is pursuing a strategy to increase crude production toward a long-term target of 3 million barrels per day. To support this, PDVSA has entered into new agreements, including a productive participation contract with Hunt Oil Company for the Caro and Carisito fields, and an alliance with SLB for integrated reservoir studies. Hydrocarbons Minister Paula Henao noted that regulatory reforms have identified over 916 exploration opportunities.

Currently, Venezuela exports approximately 500,000 barrels of oil per day to the United States, which accounts for about half of its total output. To facilitate production, the U.S. is providing more than 100,000 barrels of naphtha daily for blending with heavy crude.

This recent push for investment follows a historical shift in Venezuelan oil policy. Following the 1995 ‘Oil Opening,’ the 2007 Hydrocarbons Law transitioned the industry toward mixed companies with majority state control. While some firms like Chevron remained as minority partners, others such as ExxonMobil and ConocoPhillips exited the country, leading to multi-billion dollar indemnifications through international arbitration against the Venezuelan state.