Venezuela Expects $76 Billion in Oil Investment Under 61 New Agreements

Venezuela expects to attract nearly $76 billion in oil investment over the next five years under a package of recently signed agreements, acting President Delcy Rodríguez announced on Saturday, in what would be the biggest wave of energy investment the country has seen in years.

FAKTA

• Acting President Delcy Rodríguez said Venezuela expects almost $76 billion in oil investment over five years under newly signed deals.
• A bilateral accord with the United States covers 17 oil fields and plans to drill 250 rigs, forming part of a broader package of 61 agreements.
• Output in the western state of Zulia has risen from 70,000 to 370,000 barrels per day, with 400,000 barrels per day expected by year-end.
• Venezuela holds the world’s largest proven crude oil reserves but currently produces far below levels seen a decade ago.

Venezuela Oil Investment: What the 61 Agreements Cover

Rodríguez made the announcement on national television at the closing of an energy, oil and gas conference in Zulia state, describing the expected inflow as a turning point for the country’s battered petroleum industry. “Major investments are coming,” she said. “We are talking about investment of almost $76 billion over five years. Those investments will translate into direct benefits for our country in a win-win partnership, because our partner will also benefit.”

The bilateral agreement with the United States covers 17 oil fields and forms part of a broader set of 61 agreements signed by the two governments. According to the announcement, each drilling rig would require the hiring of about 200 workers, with the agreements expected to generate around 324,000 jobs in Venezuela, including direct, indirect and induced employment.

Zulia Output Rebounds

Rodríguez pointed to a recovery in western Zulia state as an early sign of the sector’s revival. Production there has risen from 70,000 barrels per day to 370,000 barrels per day, and she said output could reach 400,000 barrels per day by the end of the year, though she did not specify over what period the increase from 70,000 barrels per day occurred.

Largest Reserves, Depressed Output

Venezuela has the world’s largest proven crude oil reserves but has produced far less than it did a decade ago after years of underinvestment, operational problems at state oil company PDVSA and US sanctions on the energy sector. Since the January removal of President Nicolás Maduro, the country has been reopening its energy sector to foreign investment with the backing of the US administration.

The scale and timing of the proposed investment will depend on the implementation of the agreements and the ability of energy companies to develop the fields. More context on regional developments is available in the world news section.