ConocoPhillips sends team to Venezuela to evaluate oil, gas opportunities
ConocoPhillips sent a team to Venezuela to evaluate oil and gas opportunities, the company confirmed to Oil & Gas Journal Apr. 13.
In an email to OGJ, a company spokesperson said “ConocoPhillips can confirm that we sent a small evaluation team to Venezuela during the week of Apr. 6 to better understand the potential for in-country oil and gas opportunities.”
Asked what clarity the company seeks, the spokesperson said the team “will evaluate Venezuela against other international opportunities as part of our disciplined investment framework.”
The operator left Venezuela in 2007 after then-President Hugo Chavez's government reverted privately run oil fields to state control. ConocoPhillips, along with ExxonMobil, refused the government’s terms and took claims to the World Bank’s International Centre for the Settlement of Investment Disputes (ICSID). ConocoPhillips is owed about $12 billion following two judgements, an amount still sought by the company, which, prior to the expropriation of its interests, held a 50.1% interest in Petrozuata, a 40% interest in Hamaca, and a 32.5% interest in Corocoro heavy oil projects in Venezuela.
In January, following the removal of Venezuela’s leader Nicolas Maduro, US President Donald Trump urged oil and gas companies to spend billions to rebuild Venezuela's energy sector. ExxonMobil, which also exited the country in 2007, sent a technical team to Venezuela in March to evaluate the infrastructure and investment opportunities.
In a discussion at CERAWeek by S&P Global in Houston in March, ConocoPhillips’ chief executive officer, Ryan Lance, said Venezuela needs to "completely rewire" its fiscal system to attract new investment. The South American country holds a large cache of proven oil reserves, but has faced decades of production challenges due to mismanagement, underinvestment, and sanctions.
About the Author
Mikaila Adams
Managing Editor, Content Strategist
Mikaila Adams has 20 years of experience as an editor, most of which has been centered on the oil and gas industry. She enjoyed 12 years focused on the business/finance side of the industry as an editor for Oil & Gas Journal's sister publication, Oil & Gas Financial Journal (OGFJ). After OGFJ ceased publication in 2017, she joined Oil & Gas Journal and was later named Managing Editor - News. Her role has expanded into content strategy. She holds a degree from Texas Tech University.