Venezuela's long-awaited oil revival has been slower than many in Washington anticipated., according to the Wall Street Journal.
Seven months after Nicolás Maduro's removal, negotiations between the interim government and major U.S. energy companies remain bogged down, with no landmark investment deals despite the country's vast crude reserves.
Rather than rushing back into the country, firms such as ExxonMobil and Chevron are taking a cautious approach. Executives remain wary of Venezuela's history of nationalizing foreign assets, unresolved compensation disputes dating back to the Chávez era, and lingering political uncertainty. As Francisco Monaldi of Rice University's Baker Institute put it, "They have been burned twice," making boards reluctant to approve multibillion-dollar projects unless the opportunity is exceptionally attractive.
Photo: WSJWSJ writes that competition has also complicated negotiations. Several companies are pursuing the same high-quality assets in the Orinoco Belt and Monagas state while pressing for more favorable tax, regulatory, and ownership terms. According to José Ignacio Hernández of Aurora Macro Strategies, enthusiasm has yet to translate into commitments: "You have a very successful open house with 100 people attending, but then nobody calls."
Chevron has continued expanding production through operational improvements, lifting output to nearly 300,000 barrels per day,
