Venezuela sees nearly $97.4 billion oil investment over five years
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Venezuela's interim President Delcy Rodriguez says the deals could help revive output in the country.
PHOTO: REUTERS
CARACAS – Venezuela expects almost US$76 billion (S$97.44 billion) of investment in its oil and gas sector over the next five years, acting president Delcy Rodríguez said on Oct 17, as the country seeks to draw private capital into a push to boost energy production.
Rodríguez gave the estimate during the closing of an energy conference in Maracaibo, capital of the oil-producing Zulia state, where more than 150 domestic and international companies gathered to discuss investment and the revival of production.
The acting leader said the government has signed 61 agreements under its revamped hydrocarbons framework and is negotiating another 44.
The projects are intended to combine foreign investment with Venezuelan capital and labour, according to Rodríguez.
The projected investments would generate more than 324,000 direct, indirect and induced jobs, she said.
The announcement highlights the scale of Venezuela’s ambitions as it tries to rebuild an oil industry that remains well below its historic output highs despite holding the world’s largest crude reserves.
Turning the commitments into production will require years of drilling and investment in deteriorated oil fields, power systems and other infrastructure.
The investment drive is increasingly intertwined with a US-backed effort to revive Venezuela’s vast but long-struggling oil industry.
Washington struck an agreement in August with North American Blue Energy Partners, covering 17 fields and as much as US$100 billion of planned investment.
The company said it aims to raise output to 500,000 barrels a day by the end of 2028 from about 200,000 currently.
Rodríguez said higher production in Zulia would eventually allow the state to become a producer of liquefied petroleum gas, first for domestic consumption and later for export.
The targets illustrate the scale of the challenge.
Chevron Corp, which recently expanded its development rights in the Orinoco Belt and updated terms for its Venezuelan ventures, said in September that the agreements opened the way for new investment but that many years of work remained.
The company said long-term growth would depend on continued reforms and cooperation between industry and government on infrastructure improvements.
Venezuela also faces constraints ranging from unreliable power and ageing production equipment to limited oil-field service capacity and shortages of experienced workers, all of which could slow efforts to bring new barrels online. BLOOMBERG