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.
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Energy company representatives converge at Adnec Centre in Abu Dhabi on the first day of Adipec. All photos: Victor Besa / The National -
The four-day event is bringing together industry leaders, ministers and investors amid heightened concerns over energy security and global supply disruptions -
It features about 2,260 exhibiting companies -
Among those represented are 54 national and international energy companies -
BP, Shell, TotalEnergies, Eni, ExxonMobil, Chevron and Occidental Petroleum are among the major energy companies listed as exhibitors -
They are exhibiting alongside technology and industrial groups including Siemens, IBM and Microsoft -
More than 40 government ministers are expected to attend over the four days -
The event is held under the patronage of President Sheikh Mohamed and hosted by Adnoc -
Global energy leaders are exploring the partnerships, projects and technologies shaping the future of energy production, trade and delivery -
The four-day gathering has been held annually in Abu Dhabi since 1984 -
This year, AI is central to the conversation -
Energy security, electricity demand and the financing of new infrastructure are also expected to feature heavily in discussions -
The gathering comes as governments and companies reassess energy supplies, infrastructure investment and trade routes following months of disruption to global oil and gas markets
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.
