Venezuela unveiled significant new partnerships in its oil sector, involving agreements with eight multinational oil companies.
These partnerships became possible after the U.S. eased energy sanctions against Venezuela. The easing of these sanctions was a direct result of an electoral agreement.
In October, U.S. President Joe Biden’s administration relaxed sanctions. These sanctions, imposed by the former administration, targeted Venezuela’s oil and gas industry.
The relaxation was in response to an agreement between Venezuelan President Nicolás Maduro and the opposition. This agreement was centered around the 2024 elections.
Under this agreement, Maduro committed to ensuring a free and fair electoral process. He also agreed to grant amnesty to over 300 political prisoners.
Additionally, Maduro pledged to conduct the elections in the latter half of 2024. Following this, he released five political opponents who were in detention.
With sanctions reduced, several international oil companies are now actively involved in Venezuela.
Companies like Repsol, Eni, and Shell are participating in joint oil and gas projects.
Furthermore, contractors such as Halliburton, Baker and Hughes are returning to Venezuelan fields.
These developments allow Venezuela to sell oil without the previous 40% discount imposed due to sanctions.
Venezuela’s current oil production is significantly lower
Venezuela’s current oil production is significantly lower than its historical peak. However, experts predict a production increase to about 1.2 million barrels per day by 2024.
Venezuela aims to boost state revenues and stimulate economic growth. This strategy includes targeting oil sales to the U.S. without the earlier discounts.
This plan is a response to the economic challenges the country has faced since 2018.
Despite these positive developments, tensions between Caracas and Washington remain. These tensions stem from partial non-compliance with the electoral agreement.
A key issue is the reluctance to allow opposition leader María Corina Machado to run in the presidential elections.
The U.S. has given Maduro a deadline to lift restrictions on all opposition presidential candidates.
This deadline also includes releasing political and American prisoners. U.S. Secretary of State Antony Blinken emphasized this condition in a recent statement.