“Increase Production Or Leave The Country” Warns Venezuela’s Ministry Of Oil To Foreign Oil Companies

The Purpose of Venezuela’s Announcement Is to Ensure an Increase in Oil Production

Venezuela, a country with the largest oil reserves in the world, warned the foreign oil companies Chevron and Repsol to help increase production, in order to prevent them from stopping exploration in the country. Petróleos de Venezuela and the Ministry of Oil of Caracas sent a letter last month to all 19 joint venture partners whose contracts will expire in 2026, to inquire about their exploration intentions.

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According to the letter, all oil companies had until January 15 to respond, and the companies could still request a contract renewal with the country.

Venezuela will seek new partners if the current ones do not respond and help to reactivate the collapsed oil industry, after years of mismanagement and sanctions from the United States.

Chevron, headquartered in the United States, is one of the major global companies in the energy sector, particularly oil. Although sanctions have effectively prevented the company from producing oil in Venezuela since April, it has been authorized to carry out transactions deemed essential to protect its assets.

Petróleos de Venezuela reported that the company is trying to review joint venture agreements and present new partners before the current license expires. As foreign companies are afraid of conflicting with sanctions, most projects have very little progress.

Venezuela’s oil exports fell last year to the lowest level in about 70 years.