The High-Stakes Gamble Behind the New Scramble for Venezuelan Oil

Halliburton and TotalEnergies are spearheading a renewed push into Venezuelan basins, moving to replace supply gaps left by sanctions on Russia. Halliburton is deploying digital field-evaluation tools alongside partners like Eneva and WESCA, while TotalEnergies has returned to the region, specifically eyeing light crude assets in Monagas state. This influx of capital follows a massive deal orchestrated by the U.S. government, which granted North American Blue Energy Partners rights to 65 billion barrels of reserves—a move framed by the White House as a strategic reassertion of the Monroe Doctrine to displace Chinese and Russian influence.

Despite the scale of these investments, the legal foundation remains precarious. Venezuela’s constitution mandates National Assembly approval for long-term strategic concessions, and the legitimacy of the interim government that negotiated these terms is frequently contested. Local courts hold the authority to challenge or invalidate these agreements, especially those transferring control of state resources to foreign entities. Meanwhile, Chevron is aggressively expanding its existing joint ventures, targeting a production increase to 420,000 barrels per day by 2028. Simultaneously, BP, Eni, and Repsol are advancing offshore gas projects, aiming to integrate Venezuelan extraction with export terminals in Trinidad to bypass domestic infrastructure bottlenecks.