Western Firms Bet Big on Venezuela's Oil Reserves Amid Legal Uncertainty
Venezuela's vast oil reserves, totaling 303 billion barrels, have attracted major Western energy firms like Halliburton and TotalEnergies. Halliburton has signed agreements with Brazilian firms to deploy digital technologies for field evaluation and development in Venezuela's Orinoco and Maracaibo basins. Meanwhile, TotalEnergies has reversed its earlier stance and signed a deal with PDVSA, focusing on light crude oil fields like Travi in Monagas state.
The U.S. has also made a significant move by signing a 100-year concession deal with North American Blue Energy Partners (NABEP), covering 65 billion barrels of proven crude oil reserves across 17 fields. This deal, characterized as 'the biggest oil deal in world history' by former U.S. President Donald Trump, aligns with the U.S.'s vision to reassert the Monroe Doctrine and secure energy dominance in the Western Hemisphere.
However, the legal security of these investments is uncertain. Venezuela's constitution requires National Assembly approval for long-term concessions over strategic resources, and the current deal was negotiated by an interim government with contested legitimacy. The Supreme Tribunal of Justice could challenge or invalidate the NABEP concession, potentially derailing the deal.
Despite these risks, other major oil firms like Chevron are expanding their operations in Venezuela. Chevron's production has increased from 40,000 barrels per day to 250,000 barrels per day, with plans to reach 420,000 barrels per day by the end of 2028. Natural gas expansion projects are also underway, involving firms like Repsol and Eni.