American oil companies are preparing to sign oil production agreements with Venezuela
Kyiv • UNN
Independent American oil companies are preparing to sign agreements with PDVSA on oil production. This could increase Venezuela’s output by 300,000 barrels per day.
Several independent U.S. oil companies may sign production agreements with Venezuela’s state oil company PDVSA in the coming days. Three sources familiar with the plans told Politico, reports UNN.
Details
The signing ceremony was planned to take place in Houston with the participation of several U.S. producers and representatives of PDVSA. Venezuela’s oil minister and the head of the state company’s exploration division may attend.
The agreements resulted from the Donald Trump administration’s efforts to increase oil production in Venezuela. In late April, U.S. officials visited Caracas and agreed on memorandums intended to lay the groundwork for new contracts.
According to energy consultant David Goldwyn, independent U.S. companies could become the main source of growth in Venezuela’s oil production in the coming years.
While the supermajors wait to see how the political situation unfolds, independent companies can quickly reduce the risks of their projects
At the same time, the expert forecasts that new investments could increase Venezuela’s production by approximately 300,000 barrels per day over the next year. For significantly greater growth, he said, the country needs to restore electricity supplies and ensure more stable political and economic conditions.