By: Ahmed Abdel Salam
Venezuelan Vice President Rodriguez projected that investments close to $76 billion will flow into the country's oil and gas sector over the next five years, aiming to attract private capital and increase energy production.
Moves to attract foreign investment
The city of Maracaibo witnessed a gathering of more than 150 local and international companies to discuss ways to invest and restore production levels. Rodriguez explained that the government has already signed 61 agreements based on the revised oil and gas framework, while negotiations are currently underway regarding 44 additional agreements.
These projects aim to integrate foreign investments with Venezuela's local capital and labor, and are expected to contribute to creating more than 324,000 direct and indirect jobs.
Operational challenges and political criticisms
Venezuela's efforts to develop its oil sector face several obstacles, including unstable electricity supplies, aging production equipment, limited oilfield services capabilities, and a shortage of skilled labor, which could slow down the pace of operating new wells.
Politically, these trends have faced sharp criticism from the opposition and hardline blocs. Opposition leader Machado criticized the agreements with the United States, stressing the necessity of democratic stability to guarantee investors' rights, while former officials described the agreements as bearing a neo-colonial character, amid questions about the absence of public tenders for oil rights.
