$58 billion is one of the largest investments to the Venezuelan company (PDVSA) to restore the production of crude oil to 3.4 million barrels per day (bpd).
The capital investment document planned to restructure its infrastructure and seeking cash injection from foreign partners.
All contractors would have to sustain 100% of all costs and in return receive a portion of the cash flow as payment while the Venezuelan government would retain ownership.
Shy of 702,000 bpd in March to reach the set goal of 1.28M bpd, the production of 578 thousand bpd is not enough to mend ties with OPEC and its collapsing economy.
The main goals are to restore and fully supply the domestic demand for fuel, also to improve the quality and safety of the workplace guaranteeing more reliable and stable farming of crude oil and gas.
The tension between Venezuela and the US has come to a tight end when Washington the imposed sanctions got tightened by former US President Donald Trump in 2019 on PDVSA in a bid to the dictatorship of Maduro, while the Socialist government accuses the US to want to control the Venezuelan’s reserves of oil.
The risk of companies being blacklisted by Trump’s administration made it impossible to find investors; this situation did not find easy solutions when looking at far allies like Russia and China because of the years of corruption and inefficiencies of PDVSA.
With 152 points of improvement requiring $78 billion in investments; including transportation, storage, refining, commercialization operation, $69 billion would be invested in the main infrastructure. Of the $69 billion, $58 would be used to increase the production of crude oil and gas; $12 would be invested in offshore and onshore gas fields, with additional investments required to updated pipelines, terminals, and other refineries that are in dire need of maintenance.
Rumours of a committee—working with opposition—set lower bar goals to boost 2.2 million bpd with an investment close to $100 billion.
Venezuela remains the largest reserve of crude oil on the planet, yet with the most underperforming operation capacity.