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Venezuela Pitches Oil Reboot to U.S. Giants After Rapid Sector Reforms

Oil majors signal caution, seeking durable laws, security, repayment of past claims.

Venezuelan opposition leader and Nobel Peace Prize winner Maria Corina Machado gestures as she holds Venezuelan and Chilean flags during an event to meet with members of Venezuela's community residing in Chile, in Santiago, Chile, March 12, 2026. REUTERS/Amilix Fornerod/File Photo
Venezuela's acting President Delcy Rodriguez, right, and U.S. Interior Secretary Doug Burgum meet at Miraflores presidential palace in Caracas, Venezuela, Wednesday, March 4, 2026. (AP Photo/Ariana Cubillos)
Venezuela has the largest known oil reserves in the world, but years of underinvestment, lack of maintenance and US sanctions have hammered oil production
Under pressure from Washington, Venezuela's interim president Delcy Rodriguez opened up the oil and gas sector to private and foreign investment

Overview

  • María Corina Machado used CERAWeek in Houston on Tuesday to invite 100% private investment, pledging a regulator-only state role, security for assets, and royalties capped at 25%.
  • Acting president Delcy Rodríguez told a Miami investment summit that new laws give private firms control over production and sales and allow independent arbitration as the U.S. eases sanctions to let PDVSA sell directly.
  • Top executives voiced hesitation, with Chevron saying more conditions must be set, Shell calling for more progress, and ConocoPhillips and ExxonMobil refusing a return without stronger protections and restitution, including Conoco’s roughly $12 billion claim.
  • Venezuela pumps about one million barrels a day today, while leaders tout multi‑million‑barrel potential that analysts say would require tens to hundreds of billions of dollars and major repairs to pipelines and other aging infrastructure.
  • Environmental groups condemned the push, warning that expanding heavy, high‑sulfur crude production would burden nearby communities and the climate, while coverage ranged from Fox News highlighting a pro‑market “new era” to Common Dreams criticizing a windfall for oil companies.