Machado's return to Venezuela threatens a review of billion-dollar oil deals
Kyiv • UNN
María Corina Machado's return has intensified demands for elections and called oil contracts into question following Maduro's removal. Investors expect legal guarantees.
The return of Venezuelan opposition leader and Nobel Peace Prize laureate María Corina Machado to Caracas could lead to a review of oil contracts concluded after Nicolás Maduro was removed from office. This has already caused disagreements between major international companies and new investors. Bloomberg reports, UNN writes.
Details
Machado returned to Venezuela on October 25 after seven unsuccessful attempts to enter the country. Her appearance intensified calls for presidential elections and the restoration of democratic institutions.
Major oil corporations, including ExxonMobil and ConocoPhillips, may be interested in political changes that would guarantee investment protection. Meanwhile, companies that received contracts under the interim administration of Delcy Rodríguez risk facing scrutiny.
New oil contracts come under scrutiny
Particular attention is being drawn to an agreement with North American Blue Energy Partners, which in August received a 100-year concession to develop 17 oil fields. Machado accused the company's head, Alejandro Betancur, of corruption.
At the same time, Venezuela's interim authorities expect to attract nearly $76 billion in investment in the oil and gas sectors over five years.
Experts warn that without elections and reliable legal guarantees, major oil corporations are unlikely to invest substantial sums. Therefore, the industry's future will depend on the outcome of Venezuela's political transition.