Petrobras considers exploring oil in Venezuela

In a strategic move, Petrobras is evaluating exploring Venezuela's oil reserves, aiming to expand its international presence. The move comes amid the easing of US sanctions, highlighting growing foreign interest in the oil-rich region.

What motivates one of Brazil's largest oil companies to explore reserves in a country marked by international sanctions and economic crises? A Petrobras, Brazilian oil giant, recently sent a mission to assess Venezuela's resources, a strategic move that could redefine its position in the global market.

Compliant data from consultant Adriano Pires and World Energy Review, Venezuela has the largest proven oil reserves in the world, with 303 billion barrels, surpassing Saudi Arabia and Iran. Brazil, on the other hand, occupies 15th position, with 15,9 billion barrels, which explains Petrobras' search for new exploration frontiers.

In March 2024, a Petrobras mission visited Venezuela to evaluate oil production fields in Maracaibo and the Centro de Refinación Paraguaná Refinery (CRP). The visit, organized at the invitation of the Venezuelan Embassy in Brazil, had the main objective of learning about the current state of Venezuelan oil assets and exploring potential future collaborations.

According to a survey by Mordor Intelligence, Several international oil companies already operate in Venezuela, including Total SA (France), NK Rosneft PAO (Russia), Repsol SA (Spain), Eni SpA (Italy), China National Petroleum Corporation (CNPC) and China Petroleum & Chemical Corporation (Sinopec), among others. The presence of these sector giants highlights the global interest in Venezuela's vast reserves.

Additionally, a 2024 Reuters report revealed that, After the return of United States sanctions, more than 50 companies requested authorization to operate in Venezuela, demonstrating a growing foreign interest in the country. Among these companies, Chevron, Repsol, Eni and Maurel and Prom maintained their operating licenses, with Maurel and Prom having a license valid until May 31, 2026.

The high opacity of the Venezuelan government and the lack of transparency in the market make it difficult to obtain consolidated data on the sector, which represents an additional challenge for companies wishing to operate in the country.

According to CNN Brasil, in news published on Friday (02), the Petrobras mission in March took place in a context of easing sanctions, following the Barbados agreement and direct conversations between executives of the Brazilian state-owned company and the American company Chevron.

Petrobras technicians concluded that, although many Venezuelan oil assets are deteriorating due to the lack of recent investments, they have great potential for recovery and exploration. They also identified the need to reorganize Venezuelan industry, especially in the areas of refining and petrochemicals.

In the past, Petrobras had a significant presence abroad through its subsidiary Braspetro and a Holding Board. Specifically in Venezuela, the state-owned company operated Petrobras Venezuela in Caracas and maintained association contracts with PDVSA and other partners. However, following the Lava Jato allegations, these operations were closed, and the Bolsonaro administration reduced the company's international activities.

With Lula's return to power, the Petrobras internationalization project was resumed, and the mission in Venezuela is part of this strategy. A technical and legal nucleus was organized to evaluate opportunities in areas of strategic interest, including the South American equatorial margin, the Gulf of Mexico, the Caribbean and the Atlantic margins of Africa and South America.

Other countries in focus

In addition to Venezuela, Petrobras teams were also sent to evaluate opportunities in other countries such as Uruguay, Argentina, Colombia, Paraguay, Mauritania, Namibia, Angola, São Tomé and Príncipe, South Africa, Guyana and Suriname. These initiatives aim to explore new areas and expand Petrobras' international presence.

According to the CNN Brasil channel, Petrobras stated in a statement that, in accordance with its business strategies defined in the Strategic Plan 2024-2028+, the company constantly seeks to generate value and recompose its reserves through the acquisition of new exploratory areas, both in Brazil and abroad.

Although Although Petrobras does not have immediate investments planned in Venezuela, the mission carried out is an important step towards future collaborations, depending on the development of sanctions and the political environment in the region.

Do you think Petrobras should invest in new exploration frontiers outside Brazil or focus on solving internal problems? Leave your opinion in the comments!