TotalEnergies Returns to Venezuela Amid OPEC+ Supply Complications

TotalEnergies is reviving its operations in Venezuela after a five-year absence. The French energy major signed a memorandum of understanding (MoU) with PDVSA, Venezuela's state-owned oil company, on September 19.

The agreement was announced at Miraflores Palace in Caracas and outlines 'strategic cooperation in hydrocarbons.'

TotalEnergies had previously written off its Venezuelan investments by $1.4 billion in 2021. However, the new government's efforts to reform the country's Organic Hydrocarbons Law have made it more attractive for international companies.

Venezuela boasts approximately 303 billion barrels of proven oil reserves, but current production is around 1 million barrels per day, a fraction of its potential.