In a bold move amid escalating tensions with the United States, Venezuelan President Nicolás Maduro announced on Thursday that the country will be signing contracts with 20 foreign investors to exploit oil and gas resources. This announcement comes just one day after the US officially reinstated sanctions on the Venezuelan oil and gas sector.
During a meeting with workers from the state energy company Petróleos de Venezuela (PDVSA), Maduro declared, “This April, 20 strategic alliance contracts are being signed with 20 new investors, all international, who are involved in producing oil and gas in Venezuela. The international market needs Venezuelan oil, Venezuelan gas, and we are already in a position to grow sustainably.”
Maduro also assured that despite the reinstatement of sanctions by the US, there will be no blockade or restrictions that will impede the growth of Venezuela’s oil and gas industry. The US decision on Wednesday to reinstate some sanctions on Venezuela’s oil and gas sector included the prohibition of transactions with entities based in Russia or controlled by Russian individuals.
The reinstatement of these sanctions by the US marks the end of license 44, which was originally granted in October 2023, allowing US oil companies to conduct business in Venezuela and PDVSA to sell oil in the US and utilize its financial system for payments and debts. The decision to not extend this license was made in response to concerns regarding democracy in Venezuela, particularly after the disqualification of opposition leader María Corina Machado and obstacles faced by her replacement, Corina Yoris, in registering as a candidate for the upcoming presidential elections in July.
With tensions between Venezuela and the US reaching new heights, Maduro’s decision to move forward with foreign investors in the oil and gas sector showcases the country’s determination to continue its energy production and growth despite external pressures.