Venezuela is seeking more international investment in its energy sector, with the partial reform of the country’s hydrocarbon law representing a “paradigm shift”, its hydrocarbons minister said on Tuesday.
“The new framework allows private participation in primary activities through mechanisms such as the production and exploration contracts and provides guarantees such as dispute resolution and different frameworks that improve conditions for attracting this investment,” Paula Henao told delegates at Adipec in Abu Dhabi.
Venezuela's oil sector suffered for years as a result of sanctions that hampered the flow of investment into the country. The oil-rich nation is seeking more investment since the ousting of president Nicolas Maduro earlier this year.
Mr Maduro was captured and arrested in a US-led operation in January, with Donald Trump's administration taking control of Venezuela's oil industry.
“The main obstacles to large-scale investment continue to be sanctions,” Ms Henao said. The country has signed 80 commercial agreements with international companies over the past year despite continuing challenges, she added.
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The four-day Adipec event has brought together industry leaders, ministers and investors in Abu Dhabi amid heightened concerns over energy security and global supply disruption. All photos: Victor Besa / The National -
Energy company representatives converge at Adnec on the first day of Adipec -
One of Adnoc's displays in the exhibition. It features about 2,260 exhibiting companies -
BP, Shell, TotalEnergies, Eni, ExxonMobil, Chevron and Occidental Petroleum are among the major energy companies listed as exhibitors -
One of Adnoc's displays at the Ai area. They are exhibiting alongside technology and industrial groups including Siemens, IBM and Microsoft -
Adnoc Robotics display at the Ai area. The event is held under the patronage of President Sheikh Mohamed and hosted by Adnoc -
Global energy leaders are exploring the partnerships, projects and technologies shaping the future of energy production, trade and delivery -
The gathering has been held annually in Abu Dhabi since 1984 -
This year, AI is central to the conversation -
Energy security, electricity demand and the financing of new infrastructure have been discussed -
The Tokas 5 by Gecko Robotics -
A delegation of companies from Wales are looking to create partnerships in the UAE to boost energy sector growth -
Emirati engineers look at an oil refinery diorama at the NMDC Group pavilion -
A robot shows off some dance moves to the crowd -
The Teledyne Gavia Autonomous Underwater Vehicle on display at the NMDC Group pavilion -
Dr Sultan Al Jaber, Minister of industry and Advanced Technology, is shown one of Covestro's pipeline systems -
The final day of Adipec was busy -
Haroon Rahmathulla, Fertiglobe's chief commercial and growth officer -
Rolls-Royce Solutions displays its Series 4000 pump drive/generator drive engine -
Ali Al Zaabi, chief executive of Al Dhafra Petroleum and Al Yasat Petroleum, speaks at Adipec
In September, Venezuela signed an energy agreement with France’s TotalEnergies. Details on the scope and value of the agreement were not disclosed.
US company Chevron has also revealed plans to invest $7 billion to double its Venezuelan oil production to 600,000 barrels per day over seven years, while North American Blue Energy Partners plans to invest up to $100 billion across 17 Venezuelan oil projects.
US oil producer Continental Resources also signed a memorandum of understanding with the state-owned oil and gas company PDVSA to jointly develop the Ayacucho 2 block in Venezuela’s Orinoco Belt, one of the world’s largest deposits of heavy crude.
Abu Dhabi’s XRG, Adnoc's international energy investment unit, was awarded an offshore natural gas project in the South American country alongside global oil major bp and Qatar’s UCC in August.
Venezuela is one of Opec’s founding members, alongside Saudi Arabia, Iran, Iraq and Kuwait. Home to the world’s largest proven oil reserves, the country produces about 1.1 million bpd of crude, with most exports flowing to China and India, according to Rystad Energy. While that accounts for just around 1 per cent of global oil trade, the output is distinctive, with more than 67 per cent classified as heavy crude.
