Venezuela Reveals Terms for Oil Production for Foreign Investors
“Nearly two-thirds of the value of a barrel of oil produced in Venezuela may be subject to negotiation with investors, and the legal framework allows for flexible arrangements”, said Delcy Rodríguez, Special Representative of the President of Venezuela, at the FII Priority investment forum in Miami.
“The new hydrocarbons law is of fundamental importance. If we consider one barrel of oil, about 64% of its value is subject to negotiation with the investor — through reductions in royalties, income taxes, and dividend distribution,” Rodríguez stated during a video address.
According to her, significant investments lead to higher investor returns, while the new law “provides broad scope for flexible agreements and complies with international standards and protocols.”
Rodríguez noted that Venezuela offers investors the world’s largest oil reserves — about 303 billion barrels, as well as substantial gas resources estimated at approximately 5.4 trillion cubic metres. At the same time, around 80% of the gasis associated with oil production, increasing the overall attractiveness of projects.
“There are flexible mechanisms in the tax system, including income tax. In addition, alternative dispute resolution mechanisms are being introduced — both national and international arbitration. We want to demonstrate what an industry and an economy with the freedom to exercise their sovereign rights and competencies can look like,” she added.
According to the Venezuelan leadership, the country is in the process of stabilization and implementing reforms to create a productive environment and attract investment. Growth is being observed not only in the oil and gas sector, but also in construction, banking, insurance, mining, and industry.
“In a short period, more than 120 meetings have been held with energy companies — mainly from the United States, as well as from Asia, the Middle East, Africa, and Europe. I invite you to join and come to Venezuela to see the real situation with your own eyes,” the official said, emphasizing the importance of direct dialogue between governments, investors, and businesses.
