Investors are preparing to enter Venezuela, a country with the world’s largest proven oil reserves, despite significant risks. Greig Gilbert, chief executive of Apertura Energy, an investment firm, recently told a crowd in London that ‘the time is now’ to invest in Venezuela’s oil sector.

Venezuela’s Oil Reserves

Venezuela has approximately 300 billion barrels of crude oil, and the US has recently unwound some sanctions to make it easier for US companies to sell and export Venezuelan oil. As a result, Venezuela’s oil exports have increased, with over 28 million barrels exported last month, a 69% increase from the same month last year.

However, investing in Venezuela’s oil industry comes with significant risks, including decaying infrastructure, political uncertainty, and the instability caused by a recent devastating earthquake. Despite these challenges, some foreign oil companies and investment firms are moving forward with investments in Venezuela under the leadership of acting President Delcy Rodríguez.

Investment and Reforms

Reforms implemented by Rodríguez’s government have dropped the requirement that the state-run oil firm, PDVSA, holds a majority stake in joint projects. This change allows private companies to operate fields directly, hold bigger stakes, and keep more of the profit. The US government has also collected over $13 billion from selling Venezuelan oil since the capture of former President Nicolás Maduro.

While some investors are eager to enter the Venezuelan market, others are more cautious due to the significant risks involved. ExxonMobil CEO Darren Woods has stated that Venezuela’s oil industry is ‘uninvestable’ due to years of punishing international sanctions and economic crises. Nevertheless, some investors believe that the potential rewards outweigh the risks and are willing to invest in Venezuela’s oil sector.

Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.