Current production of approximately 1.25 million barrels daily represents a significant recovery from below 1 million bpd at end-2025, yet remains far below historical levels. Venezuela produced nearly 3 million barrels daily at the start of the century and still exceeded 2 million in 2017 before a combination of underinvestment, infrastructure deterioration, management problems and international sanctions triggered a production collapse that reached below 500,000 bpd in 2020.
The government’s strategic objective of 3 million bpd through phased investments, field rehabilitation and increased private participation contrasts sharply with industry sources placing the end-2026 target around 1.37 million bpd. This gap underscores the challenge ahead. Reaching 3 million bpd requires not just capital but rebuilding much of Venezuela’s industrial chain including wells, pipelines, processing plants, crude upgraders, refineries and electrical systems, plus sufficient drilling rigs and specialized services.
Infrastructure constraints are already visible in the current production recovery. Only two land drilling rigs are currently operational in Venezuela, according to Reuters. Oilfield services company SLB is working with Formentera Partners to reactivate or introduce new equipment and studying recovery of up to 15 rigs already in the country, with an initial goal of four operational before year-end pending contract closures.
Export infrastructure presents another critical bottleneck. Increased production is colliding with aged port facilities and problems with electrical supply and crude quality. The José terminal, one of Venezuela’s main oil export points, is accumulating delays of up to 30 days for some vessels, while export capacity remains around 1.25 million bpd, well below the more than 2.5 million Venezuela historically handled.
The sector reopening is supported by sweeping regulatory reform. A January amendment to the Organic Hydrocarbons Law significantly expanded space for private participation. Private companies domiciled in Venezuela can now participate directly in exploration, production, transportation and storage activities through contracts with state enterprises, while hydrocarbon marketing has also been liberalized. New contracts can have an initial 25-year term, extendable for an additional 15 years.
This article was curated and published as part of our South American energy market coverage.
