New Delhi. Venezuela, once a big name on the world’s oil map, is once again in the headlines. After the meeting with President Donald Trump at the White House, the eyes of American oil giants have again turned to this troubled country. With the condition of potential investment of billions of dollars, security guarantees and political support, companies have made it clear that investments can be made in Venezuelan oil wells.
Top officials of major oil companies like Chevron, ExxonMobil and ConocoPhillips attended an important meeting chaired by President Donald Trump at the White House. The current condition and future prospects of Venezuela’s oil sector were discussed in the meeting. Companies say that if there is a solid guarantee of investment security there and there is political support from the US government, then they will not shy away from investing billions of dollars. Officials of these companies said that Venezuela’s oil industry has been weak for many years due to sanctions and poor infrastructure, but there is a big opportunity here in the long run.
Chevron may expand operations
Chevron VP Mark Nelson said that his company already has a good presence in Venezuela and can rapidly expand its operations. Nelson said, “Today Chevron has 3,000 employees in four different joint ventures in Venezuela. Production has increased from about 40,000 barrels per day to 240,000 barrels per day. Chevron can immediately increase our lifting from those joint ventures by 100 percent and further increases are possible within 18 to 24 months.”
Reforms in laws and business rules are necessary
ExxonMobil CEO Darren Woods said that Venezuela has no shortage of oil resources, but for investment there is a need to improve its laws and business rules. He said that the existing legal and business structure is such that it is difficult to invest in it. However, if called upon, his company is ready to send a team of technical experts within a few weeks to assess the current situation of the industry.
Oil company Halliburton wants to return again
ConocoPhillips chief Ryan Lance said Trump’s approach of using energy investment instead of protracted conflict shows a new way forward. This has given hope again to the people of Venezuela. At the same time, Jeff Miller, CEO of Halliburton Company, said that his company had withdrawn work from Venezuela in 2019 due to sanctions, but now it is eager to return. He said that 600 Venezuelan employees working with Halliburton around the world are waiting to work in their country again.
Trump gave security guarantee
During this, President Trump assured the companies that whatever companies invest in Venezuela, they will be guaranteed strong security. Many officials also said that long-term political stability and investment security will determine how fast and on what scale investment will happen. Venezuela was once among the world’s largest oil producing countries, but in the last 10 years its production has declined drastically due to sanctions, mismanagement and lack of capital investment.
