CARACAS, Venezuela, February 26, 2026
Venezuela is positioning itself for accelerated oil and gas growth, targeting a near-term increase in production from 1.1 million barrels per day (bpd) to 1.2 million bpd, with a 2027 objective of 1.5 million bpd and a longer-term return toward its installed capacity of 2.8 million bpd. For African investors and service companies, the message is clear: there is structured opportunity, backed by regulatory reform, defined contract models and political commitment at the highest levels.
This strategic direction was reinforced during high-level engagements between the African Energy Chamber (AEC) and Venezuela’s petroleum leadership. Part of a high-level working visit to Caracas this week, the Chamber met with Eduardo Antonio Ramirez Castro, Deputy Minister of Hydrocarbon Geopolitics, Luis González, Deputy Minister of Gas and Jovanny Martinez Executive Vice President at the state-owned oil corporation PDVSA. The parties agreed to draft a 12-month joint work plan covering upstream cooperation, refining rehabilitation, gas commercialization, finance structuring, trade flows and training implementation.
“This was not a symbolic engagement – it was a serious, high-level discussion where Africa was clearly recognized as a strategic partner. The fact that all ministers in charge of the petroleum sector were present, including Deputy Minister of Petroleum Eduardo Antonio Ramirez Castro, Deputy Minister of Gas Luis González and the highest executive of the PDVSA, is a strong signal that Venezuela is ready to drive its hydrocarbon sector forward,” stated NJ Ayuk, Executive Chairman of the AEC.
“There is a clear understanding within the Ministry and at PDVSA of what African companies have achieved across complex and mature hydrocarbon markets. They have an aggressive, structured plan to develop their fields and accelerate production, and they are ready to move,” he added.
Towards a Venezuelan Hydrocarbon Resurgence
Venezuela holds approximately 303 billion barrels of crude reserves – largely concentrated in the 54,000 km² Faja del Orinoco, home to 272 billion barrels – alongside 195 trillion cubic feet of gas. With 56,000 wells already drilled and over 100,000 additional wells targeted in the coming years, the scale of redevelopment potential is significant.
Considering this potential, discussions during the Caracas meetings centered on joint rehabilitation of priority PDVSA assets, including mature oil fields, Category 2 and 3 wells suitable for rapid workovers, offshore assets such as Perla and Mariscal Sucre and refinery upgrades at Paraguaná, El Palito and eastern facilities. These projects represent relatively low-capex entry points capable of delivering incremental barrels in the short term.
The country’s January 29 Hydrocarbons Law reform, alongside administrative simplification measures and optimized fiscal terms, is designed to attract new participation. Investment vehicles include Production Participation Contracts (CPPs), ATFs and Empresas Mixtas – a form of private-public partnership. Officials highlighted the success of existing CPP structures – including Petrozamora, which reportedly increased production from 23,000 bpd in 2024 to 100,000 bpd in 2026 – as evidence that the model can deliver growth.
The AEC will facilitate African participation in these structures, supporting evaluation of asset data, commercialization rights and export provisions. Majority shareholders retain export freedom, while minority partners may export under defined pricing conditions – clarity that enhances bankability. Finance will underpin execution. Premier Invest – also a participant at the meetings – is expected to structure trade finance backed by PDVSA barrels and inventory, alongside project and infrastructure finance for upstream and midstream rehabilitation. Capital mobilization discussions include Gulf partners, African national oil companies and private operators.
Strengthened South-South Energy Corridors
Gas development and Global South trade also emerged as strategic priorities. Venezuela aims to scale production from approximately 4,100 million cubic feet per day (mmcf/d) toward a 6,000–6,500 mmcf/d range, supporting domestic supply, industrial feedstock and future LNG and LPG exports. For Africa, this presents dual opportunity.
First, African firms with experience in offshore gas, LNG modularization and pipeline development can participate in infrastructure recovery and expansion. Second, commercial trade flows – particularly LPG and bitumen – offer immediate South–South cooperation pathways. The parties explored establishing long-term LPG supply channels to African markets to support clean cooking programs and reduce energy poverty. Structured bitumen agreements could also provide African infrastructure markets with more stable supply and lower import premiums.
Beyond hydrocarbons, education and technical exchange were identified as strategic pillars. Structured one-week technical programs for African executives at Venezuelan petroleum institutions, including the Bolivarian University of Hydrocarbons, will form part of a reciprocal exchange model covering petroleum engineering, geology, trading and energy law.
For the AEC, the engagement signals a shift toward deeper South–South hydrocarbon integration – positioning African companies not only as domestic operators, but as outward investors and strategic partners in one of the world’s largest resource bases.
