Venezuela’s state-owned oil company, PDVSA, has signed two significant agreements with the Nigerian firm Veneoranto to advance the exploration of offshore natural gas reserves.
The signing ceremony took place on Thursday at the Miraflores Presidential Palace, with Venezuelan Oil Minister Pedro Tellechea and Veneoranto representative Arthur Eze formalizing the agreements. These agreements will evaluate the “technical-economic feasibility” of two gas fields: Barracuda in the Gulf of Venezuela and Boca de Serpiente on the Deltana Platform near the eastern maritime border. Venezuelan officials estimate that these fields contain a combined total of approximately 30 trillion cubic feet (tcf) of natural gas. The goal of these agreements is to validate these reserves, potentially positioning Venezuela as the country with the fourth-largest natural gas deposits globally, as the nation currently holds 200 tcf of certified reserves.
President Nicolás Maduro welcomed the new investments, calling for increased foreign participation in Venezuela’s energy sector. During a televised address, Maduro emphasized Venezuela’s readiness to enter into fair and mutually beneficial contracts with international partners. He also highlighted the array of opportunities available for global investors in the oil and gas industries. “I am pleased that the natural gas processes are accelerating,” Maduro remarked. “Soon, we will be exporting natural gas to Africa.”
Veneoranto is a newly formed subsidiary of Atlas Oranto Petroleum, a Nigerian multinational corporation owned by Arthur Eze, one of Africa’s wealthiest individuals. Headquartered in Abuja, Atlas Oranto operates projects across 11 African countries. Venezuela has been actively seeking private sector investment to rejuvenate its energy industry, which has been severely impacted by U.S. sanctions. Since 2017, the U.S. Treasury Department has imposed various sanctions, including a financial embargo and secondary sanctions designed to restrict Venezuela’s oil revenues. In April, the U.S. reinstated broad sanctions after a six-month waiver that allowed PDVSA to export crude oil without restrictions. Companies dealing with Venezuela now require U.S. Treasury authorization, facing the threat of secondary sanctions. It remains unclear whether Atlas Oranto sought or received approval from the Treasury Department.
The Maduro administration has emphasized the investment opportunities in its largely untapped natural gas reserves. Unlike joint oil ventures, Venezuelan law does not require PDVSA to hold a majority stake in gas projects, allowing private enterprises to potentially own the entire share. Recently, Venezuela signed two offshore gas agreements with Trinidad and Tobago. For these projects, Trinidad, Shell, and BP had to secure U.S. Treasury licenses to negotiate with the Maduro administration, as U.S. officials sought to prevent Venezuela from receiving any direct cash payments from these agreements. In both instances, PDVSA does not hold any ownership stakes, with Venezuela’s role limited to collecting taxes and royalties.
