Venezuela's acting President Delcy Rodríguez has presented a reformed oil industry to potential investors at a Saudi-backed investment summit in Miami, highlighting lucrative long-term opportunities in the resource-rich country. Speaking from Venezuela on Wednesday, Rodríguez emphasised the recent overhaul of the oil sector, which has opened up to private capital, international arbitration, and greater scrutiny following the capture of her predecessor, Nicolás Maduro, by US forces in January.
Rodríguez projected double-digit economic growth for Venezuela this year and the next two years, creating conditions where investors can feel secure. “We are in a process of stabilisation, implementing the reforms needed for a productive environment and to attract investments that will diversify the engines of the Venezuelan economy,” she said during a presentation delivered entirely in Spanish.
Venezuela holds the world’s largest oil reserves, but production has plummeted from 3.5 million barrels per day in 1999 to less than 400,000 barrels per day in 2020 due to corruption, mismanagement, and US sanctions. The country currently produces about one million barrels per day. Rodríguez touted low production costs and a willingness to negotiate, noting that 64% of a barrel's cost is open to negotiation with investors regarding royalties, taxes, and dividends.
After Maduro's capture, Rodríguez moved quickly to overhaul oil regulations. A new law grants private companies control over oil production and sales, ending the monopoly of state-owned Petróleos de Venezuela S.A. (PDVSA). It also allows for independent arbitration of disputes. In response, the US Treasury Department has eased sanctions, issuing a broad authorisation for PDVSA to sell oil directly to US companies and on global markets.
