Maha Energy, a Swedish company, is entering Venezuela following the U.S.’s relaxation of sanctions on the country.
Maha secured rights in the Petrourdaneta project, linked to Brazil’s Novonor group. Kjetil Solbraekke, Maha’s CEO, confirmed this development.
If successful, Maha might obtain Novonor’s 40% share in a joint venture. This venture involves Petróleos de Venezuela, the state’s oil firm.
The U.S. decided to relax its sanctions on Venezuela on October 18th. In return, Venezuela promised more political freedom.
Due to this, Venezuela might increase its oil output. More Venezuelan oil may go to U.S. refineries. This could affect U.S. gasoline prices before the 2024 presidential race.
Maha believes Venezuela will become less isolated. However, the U.S. might bring back sanctions.
This could happen if Venezuela doesn’t progress in political talks. Free and fair elections are also a condition.
Venezuela can gain from selling more oil. The country’s Ministry of Oil and PDVSA didn’t comment immediately.
Novonor also chose not to speak on this topic. Yet, Venezuela’s Ministry of Oil needs to approve the deal.
The Petrourdaneta project could grow rapidly. It might go from 1,000 barrels daily to between 20,000 and 40,000 in two or three years.
Maha plans to revive dormant wells soon. These wells are in Lake Maracaibo’s western shores. This area is significant for Venezuela’s oil history.
Solbraekke highlighted Maha’s ethical stand. The company will not tolerate corruption.
Maha’s move might inspire other transactions in Venezuela’s oil sector. Previous PDVSA partners, like Novonor, could follow suit. Novonor needs to sell assets to repay debts in Brazil.
Many Partners
PDVSA has many partners. Some partners stopped working due to tough business conditions.
Before choosing Petrourdaneta, Maha looked at other companies. Maha operates in Oman, the U.S., and Brazil.
They will pay Novonor €4.6 million for a nine-month exclusive deal. This deal allows Maha to check the project’s viability.
They can also extend the deal by 12 months by paying the same amount.