International oil companies are wasting no time testing how serious Washington and Caracas really are about reviving Venezuela’s oil industry. And their opening demand is refreshingly blunt: if we’re going to invest, we need to control our barrels.
According to Reuters sources, international oil executives and lawyers are pushing for fast, targeted changes to Venezuela’s hydrocarbons law that would allow foreign partners to export the oil they produce directly, rather than handing it over to state oil company PDVSA to sell on their behalf. The ask is narrow by design. Leave PDVSA as majority owner, they say, but let international partners control their share of production, access export terminals, and—most importantly—get paid quickly.
Oil companies are likely to be sticklers on the last point. Under the current framework, PDVSA controls sales and deposits proceeds into joint venture accounts. That system collapsed under U.S. sanctions, leaving billions of dollars owed to partners including Chevron, ENI, and Repsol. For oil companies with long memories, Venezuela isn’t short on geology—it’s short on trust.
The industry is also pushing to roll back extra taxes layered onto the law in 2021, which pushed Venezuela’s government take to some of the highest levels in Latin America. Companies are signaling they can live with royalties and income tax. Extra taxes, opaque fees, PDVSA-controlled sales, delayed payments, or contracts open to interpretation, not so much.
This legal pressure campaign dovetails neatly with the Trump administration’s broader strategy. According to a Friday interview with Axios, Energy Secretary Chris Wright said the U.S. is pursuing oil and critical minerals deals with Venezuela as part of a plan to stabilize the country economically and redirect exports away from China. The goal, Wright said, is higher production, cleaner flows, and a more predictable business environment—without U.S. government subsidies.
What’s emerging is a pragmatic alignment. Washington wants oil flowing under U.S. supervision. Oil companies want export control and legal clarity. Caracas wants cash flow and investment yesterday.
By Julianne Geiger for Oilprice.com
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