Energy Reforms Delayed in Venezuela

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

Preliminary reviews were already expected for revised contractual laws in Venezuela. While Venezuela's energy sector is recovering, the delays are leaving would-be investors on the sidelines.

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Interest is There, but the Contracts Aren't

It's uncertain how long it would take for Venezuela to revise laws governing how to work in the nation's energy sector, media reports on Friday suggested.

Venezuela began a review of its energy laws shortly after U.S. military forces seized former President Nicolas Maduro and his wife from their compound in Caracas in January. Preliminary guidelines for new production-sharing contracts and joint ventures were expected by March, with a final phase of review coming by the end of this month.

Industrial Info Resources is tracking nine operational petroleum refining facilities in Venezuela. There are 36 active petroleum refining turnarounds, revamps, rehabilitations, restarts and refurbishments in the country, worth US$207.5 million. Subscribers can learn more from lists of plant profiles and detailed project reports.

"We are not expecting the contract review to finish any time soon," an advisor told Reuters on condition of anonymity. "Interest is excessive from some companies that do not have the means yet to measure the risks, but not even they are putting a dollar until finding counterparties to negotiate with and reading the terms."

U.S. supermajor Chevron already has a license to operate in Venezuela. Last month, the U.S. Office of Foreign Assets Control, part of the Department of the Treasury, removed interim President Delcy Rodriguez from the Specially Designated Nationals list, making it easier for her to conduct business in the United States and with U.S. entities.

In a separate report from Reuters on Friday, delegates from ConocoPhillips are reportedly set to visit Venezuela to examine the emerging opportunities in the country. Chief Executive Officer Ryan Lance, however, said last month that reforms so far in the post-Maduro Venezuela are "woefully inadequate."

Some U.S. energy executives have said the risk is too high to invest in Venezuela, questioning whether a potential future government--either in the United States or Venezuela--would honor Trump-era agreements.

Progress is Progress

Venezuela sits on top of some of the largest oil deposits in the world, and its heavy grade of crude oil fits in a U.S. refinery sector tailored for those products. By mid-March, Industrial Info Resources reported that state-owned Petroleos de Venezuela (PDVSA) had conducted partial repairs on a cracking unit at its Amuay refinery. Work is set for completion later this month. Subscribers to Industrial Info Resources' Global Market Intelligence (GMI) Petroleum Refining Plant Database can view the refinery profile.

Elsewhere, Petromonagas, a joint venture of the state oil companies of Venezuela and Russia, started the process of resuming operations at its Venezuela Upgrader. Industrial Info Resources sent an alert to clients last month that work was supporting the restart of a delayed coker with a capacity of 80,000 barrels per day (bpd). The entire facility can handle 130,000 bpd. Subscribers can learn more in a detailed plant report.

The plant is still running at reduced rates. It's not expected to be back to full capacity until 2028. Early-year operations came more than four years after a fire forced operators to shut the plant down.

By the Numbers

• $207.5 million in active investments in Venezuela
• 1 million barrels per day in exports

Moving through trading houses such as Trafigura, Venezuela's oil exports recently topped 1 million bpd, the highest since late 2025.

Key Takeaways

• Reforms are delayed in Venezuela's energy sector.
• Conoco taking a preliminary look at the opportunities.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).