Venezuela’s oil revival, considered to hold the world’s largest oil reserves, is proceeding slower than the U.S. hoped. ExxonMobil and ConocoPhillips remain hesitant to return to Venezuela, as negotiations are slowed by demands for attractive fiscal terms and concerns over political and legal stability.
Smaller U.S. players, such as SLB and Hunt Oil, are moving faster, signing agreements, while Pacific Coast Energy is pursuing an $800 million-backed expansion.
Venezuela’s oil minister, Paula Henao, stated that earlier this month, deals were signed with oilfield service majors SLB and Hunt Oil as part of efforts to boost investment in the country’s key energy industry.
Despite some deals being signed, neither ExxonMobil nor ConocoPhillips have returned, as negotiations are not progressing as fast as the U.S. Administration likely expected.
