Venezuela's Refineries on Life Support as $20 Billion Repair Bill Looms

Venezuela's refineries are in dire need of repair and investment to restore their capacity. The Paraguana Refining Center, once a symbol of the country's oil wealth, now runs at a fraction of its 955,000-barrel-per-day capacity.

The complex, which includes the Amuay and Cardon refineries, is plagued by years of underinvestment, equipment failures, and shortages. Workers describe the facilities as 'ugly and rusty,' with open-air waste pits nearly full and residue seeping across pipelines and valve stations.

Recovery from recent earthquakes has further complicated matters, according to Oswaldo Felizzola, a Venezuelan energy analyst. He estimates that restoring refining capacity would require at least $20 billion and expects major investments to be pushed into 2027 and beyond.

The government of interim President Delcy Rodriguez faces an uphill battle in raising funds for refinery rehabilitation, with foreign oil companies showing little interest due to the facilities' poor condition and unattractive investment model.