Acting President Delcy Rodriguez reaffirmed that revenues from oil trading will continue to be used to strengthen public services, health, education and social welfare. Photo: Venezuelan Presidential Press.

Venezuela has inked this Friday a significant energy agreement with the private sector to boost hydrocarbon production in the Orinoco Belt.

The Acting President of Venezuela, Delcy Rodríguez, led this Friday, the signing of an international energy agreement on hydrocarbons with representatives of the private sector, concluding a 25-year alliance between the state-owned Petróleos de Venezuela (PDVSA) and the GeoPark company, belonging to the Gilinski Group.

The strategic alliance aims to enhance the hydric recovery factor in the Bare field, with the private sector covering all necessary financial investments.

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The agreement consists of about 1,100 wells with a current gross production of 11,000 barrels, but with an overall potential of up to 95,000 barrels per day.

The director of the Gilinski group, a majority shareholder in GeoPark, Jaime Gilinski emphasized the commitment to environmental standards and community responsibility, while Rodríguez highlighted the social development benefits. He confirmed that the work will be carried out under strict environmental management standards and responsibility with surrounding local communities.

“This agreement, for 25 years, represents much more than a figure in a percentage of participation, it represents our bet that working hand in hand with PDVSA (Petróleos de Venezuela), with transparency and conviction of future. Bare’s field can become an example of how responsible private investment and the national interest can go together,” said Gilinski.

For her part, the Venezuelan Acting President welcomed the incorporation of capital from Colombia in the national plan of industrial recovery energy. “I’m excited that it is a company from Colombia that also joins this plan for the recovery of our oil industry to increase production,” she said.

Rodríguez reaffirmed that revenues from oil trading will continue to be used to strengthen public services, health, education and social welfare.

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This initiative is part of Venezuela’s broader effort to attract foreign capital and revitalize its energy sector amidst economic challenges and it follows previous negotiations with international energy firms, signaling the country’s efforts to regain economic stability through foreign investment.

Economic Impact

The revenue from this petroleum venture is expected to bolster public services, healthcare, education, and social welfare. The government views this as a step towards economic recovery, aiming to increase foreign exchange reserves and stimulate commercial activity. However, the success of this initiative hinges on overcoming political and economic hurdles.

Venezuelan energy sector is on the path to recovery, with strategic alliances and foreign investments playing a crucial role. The partnership with GeoPark exemplifies the country’s efforts to attract capital and expertise to revitalize its petroleum industry. Despite challenges, Venezuela remains optimistic about its energy future, leveraging international cooperation to drive economic growth.

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