Negotiations with Venezuela’s government, under the Delcy Rodríguez administration, have benefited from recent reforms to the Hydrocarbons Organic Law, approved by the National Assembly. These reforms dismantle PDVSA’s exclusive control, opening the sector to private and foreign investors with more flexible contract terms and tax incentives. Shell and Chevron have reportedly progressed in agreements with the Venezuelan regime to secure access to strategic commercial zones.
Sawan underscored the necessity of stable fiscal and legal frameworks to provide investment security and enable implementation of technically sound development plans. He anticipates one or two project approvals within Venezuela in the near term, potentially by the end of 2026. While gas remains the primary focus, Shell maintains an interest in exploring opportunities in liquids to support Venezuela’s responsible production growth.
Shell’s extensive Venezuelan talent pool within its workforce further motivates engagement in the country. The company’s strategic approach aligns with growing global gas demand amid Middle East tensions impacting European energy supply, positioning Venezuela as a critical resource base for LNG exports and energy diversification.
This article was curated and published as part of our South American energy market coverage.
