Venezuela is not worthy of sympathy! Recently, the country convened a national assembly to unanimously approve, at first reading, a bill permitting foreign companies to manage its domestic oil fields—on the condition that those foreign firms bear all risks and costs themselves.

In early January, a sum totaling $300 million—channeled discreetly through a Qatari bank—quietly entered Venezuela’s banking system. Nominally, this was the down payment on a $500-million crude oil deal between the U.S. and Venezuela. In reality, it was a ‘stability fee’ for the transitional government. Rodriguez desperately needed this money. She intended to use it to placate her restless former subordinates—and to rein in inflation, which had already surged to 270%. Trump, watching from the White House, made no attempt to conceal the true nature of this transaction. He even publicly praised Rodriguez for demonstrating “exceptional leadership.” Beneath that compliment lay a chilling subtext: as long as oil flows to the United States, it doesn’t matter who sits in that chair. Thus, on January 23, Venezuela broke its own ironclad state-ownership doctrine—a principle it had upheld for over two decades—in order to fulfill its promise to the U.S. But will this actually work? Across the seemingly enticing negotiation table sit executives from ExxonMobil and Chevron. Their expressions betray less excitement than awkwardness. Because history has memory—and an exceptionally sharp one. In 1976, Venezuela’s government expelled foreign capital for the first time. In 2007, the Chávez administration seized assets belonging to ConocoPhillips and ExxonMobil. To this day, Venezuela has paid not a single cent of the $11 billion in compensation awarded by international arbitration tribunals. Against this backdrop of total ‘credit bankruptcy,’ the new law still demands that foreign investors ‘assume all risks’ themselves. This is not merely a question of capital—it is a technological black hole. Today’s Venezuelan oil fields are no longer gushing fountains where inserting a pipe yields instant flow; they are ruins. Repairing their shattered infrastructure carries a minimum price tag of $100 billion. Even more fatal: there is no one left. Rodriguez, a 62-year-old oil worker, stands blankly on the shores of Lake Maracaibo. He absently fingers his worn employee ID card, eyes vacant. Back in the 1990s, that card signified middle-class status—even fruit vendors on the street gave change in U.S. dollars. Today, his daily wage cannot buy two bottles of mineral water. His son, a skilled mechanic, fled to Chile with his wife and children three years ago. Seven million others have done the same. This massive exodus has stripped the country of nearly all its engineers and skilled technicians. What remains in Venezuela today is only starving elders, rusted equipment—and a freshly printed ‘Oil & Gas Reform Bill.’ Even if ExxonMobil truly arrives with billions in cash, it will discover it cannot hire a single senior technician in the country capable of reading a pressure gauge.

Will Venezuela and the United States reach a ‘large-scale oil field ownership agreement,’ and might Venezuela consider withdrawing from OPEC? What impact could such moves have on global financial markets?

Interim President Rodriguez stated that the energy cooperation agreement between Venezuela and the United States will span 25 years. Its initial phase aims to raise crude oil production to 1.5 million barrels per day, thereby revitalizing Venezuela’s domestic energy sector and broader economy. The two sides plan to develop 17 strategic oil fields first. The target of 1.5 million barrels per day is only an initial output goal; eight additional new fields will subsequently be developed to further expand Venezuela’s overall oil production capacity. Refineries in Qingdao, China, have previously processed Venezuelan crude oil. Venezuelan crude is highly viscous, making transportation and refining especially difficult. Venezuela’s withdrawal from OPEC is entirely justified. OPEC—the Organization of the Petroleum Exporting Countries—was founded in 1960 in Baghdad, Iraq. Its founding members were Iraq, Iran, Kuwait, Saudi Arabia, and Venezuela. Venezuela was one of OPEC’s original founding members. Iraq and Kuwait later fought a war. Iran and Iraq waged a brutal, inexplicable eight-year conflict. Houthi forces backed by Iran have long carried out attacks against Saudi Arabia. Of the five founding members, four have engaged in fierce armed conflicts with one another—only Venezuela has remained uninvolved.

Qatar's UCC in Talks for Possible Entrance into Oil, Gas Areas in Venezuela, Executive Says

15 hours ago

Qatar's UCC Oil and Gas Holding is in talks to enter new Venezuelan oil and gas fields following a recent license for the Loran gas project with BP and ADNOC, confirming broad interest in sector opportunities.

reuters

2026-09-29

Qatar's UCC in Talks for Possible Entrance into Oil, Gas Areas in Venezuela, Executive Says

Qatar's UCC in Talks for Possible Entrance into Oil, Gas Areas in Venezuela, Executive Says

FAQ