Venezuela Oil Boom Eludes Big Companies Despite Rising Production

Seven months have passed since Nicolás Maduro's removal from power in Venezuela, but major oil companies are still hesitant to commit significant investments to the country.

The interim government has been trying to attract foreign investment to boost Venezuela's oil production, which currently stands at 1.07 million barrels per day, up from 937,000 last year.

However, firms like ExxonMobil and Chevron are taking a cautious approach due to concerns about nationalization of assets, unresolved compensation disputes, and lingering political uncertainty.

'They have been burned twice,' said Francisco Monaldi of Rice University's Baker Institute, referring to the executives' reluctance to invest in Venezuela.

While Chevron has expanded production through operational improvements, it has not committed fresh billions to new developments. Exxon has scaled back its interest due to difficulties in securing assets and rehabilitating previously nationalized infrastructure.