Venezuela’s oil ministry has suspended 19 oil and gas production-sharing contracts with private companies that were signed during the administration of Nicolás Maduro, according to sources cited by Reuters. The move is part of a broader review of energy deals as Caracas and Washington assess their legitimacy.
The suspension — affecting projects across regions including Lake Maracaibo and the Orinoco Belt — has not yet impacted the country’s oil and gas output, industry insiders said. Venezuela’s state oil company, Petróleos de Venezuela, S.A. (PDVSA), continues to sell crude produced under the paused contracts.
Why Contracts Were Suspended
Officials told Reuters that both the Venezuelan and United States governments are reviewing the credentials of the private firms involved. Some of the agreements were signed while Venezuela was under U.S. sanctions and involved companies that are little-known or registered in tax havens.
Caracas and Washington may recommend that some contracts be revoked entirely after the ongoing review.
Context: U.S. Control Over Venezuelan Oil Sector
In January, U.S. forces captured Maduro and took control of Venezuela’s oil exports and sales, a dramatic shift in the nation’s energy landscape. Since then, the U.S. Treasury Department has issued licenses allowing companies to trade Venezuelan crude and operate in parts of its oil and gas industry under regulatory oversight.
Hydrocarbon Law Reform
Last month, Venezuela’s National Assembly passed reforms to the hydrocarbon law aimed at facilitating foreign investment in the country’s dilapidated oil sector. Under the new law, the government now has six months to review existing contracts, including those now suspended.
Traditional Partners and Future Production
Despite the suspension, PDVSA and the oil ministry are in talks with major international partners such as Chevron, Repsol and Maurel & Prom to expand production in established fields. These discussions could help boost crude and gas output even as older contracts are reassessed.
Output So Far Unaffected
Sources emphasized that the suspension has not disrupted oil or gas production thus far. Crude from the affected deals continues to be sold by PDVSA, and the broader oil industry activity remains steady.