Venezuela Hopes to Restore Oil Production in the Country
Energy cooperation between Venezuela and the United States makes it possible to expect a recovery in the country’s oil production and will bring economic benefits, Eduardo Quintana, head of the regional branch of the Federation of Chambers of Commerce and Associations in La Guaira state, told RIA Novosti.
“There is optimism that everything will develop and we will be able to restore the production process in the country’s oil industry,” Quintana said.
According to him, the return of international oil companies to Caracas is already stimulating the national economy.
“The oil sector is beginning to revive: more and more entrepreneurs are coming to the country, returning to work and restoring their positions. This will give a new impetus to the Venezuelan economy,” he explained.
In February, Caracas and Washington agreed on a long-term partnership to promote a joint energy agenda. The agreement was reached during a visit to Venezuela by U.S. Secretary of Energy Christopher Wright. The parties reviewed joint projects in the oil and gas sector, as well as in mining and the electric power industry.
The state oil company Petróleos de Venezuela (PDVSA) subsequently signed new contracts with American and European companies operating in the oil and gas and refining sectors.
Quintana, who also heads the Chamber of Commerce of La Guaira state in the north of the country, noted that over the past year oil production in Venezuela has exceeded one million barrels per day.
“We must recognize that we are an exporting country. We need to develop a 50/50 formula: half to import as raw materials and semi-finished products, and half to export as our own products. Then the trade balance will be very favorable for us,” he added.
The United States and Venezuela began the process of restoring diplomatic relations after, in early January, Washington carried out an airstrike on Caracas with the aim of capturing President Nicolas Maduro and his spouse, and U.S. President Donald Trump announced his intention to take control of Venezuelan oil.
Two months later, the U.S. State Department reported the restoration of diplomatic relations between Caracas and Washington, which had been severed in February 2019, when President Donald Trump supported opposition leader Juan Guaidó, who had declared himself interim president of the country. The restoration of diplomatic ties took place during the visit of U.S. Secretary of the Interior Doug Burgum, following which agreements in the energy sector were signed.
