Venezuela’s amended Organic Hydrocarbons Law has created new investment opportunities across its oil and gas sector, offering international companies different contractual options for developing heavy-oil reserves, mature fields, offshore gas resources and refining infrastructure.

The revised framework allows investors to choose between hydrocarbon productive participation contracts, restructured joint ventures with state-owned PDVSA, and direct contracts covering infrastructure and oilfield services.

The changes form part of the government’s efforts to attract foreign capital, increase production and expand activity across the energy value chain.

Venezuela holds an estimated 303 billion barrels of proven oil reserves and 193 trillion cubic feet of natural gas, according to figures presented by Vice Minister of Commercial Policy Ricardo Gomez at the Venezuela Global Investment Forum during African Energy Week 2026 in Cape Town, South Africa.

“The opportunities extend from upstream projects to downstream and refining,” Gomez said, as PDVSA works towards a target of securing 105 definitive oil contracts by the end of 2026.

Participation Contracts and Joint Ventures

Hydrocarbon productive participation contracts (CPPHs) provide one of the most direct routes into the market.

Under this model, a company incorporated in Venezuela operates a designated area at its own cost and risk for 25 years. With ministerial approval, the operator can also market its share of production.

Italian energy company Eni transferred its Junín-5 heavy-oil field to this model in September, moving from a minority joint venture position to become the asset’s exclusive operator.

The field contains 35 billion barrels of certified oil in place.

Companies seeking a partnership-based approach can instead enter restructured joint ventures with PDVSA.

While the state company retains majority ownership, international partners can receive operational management responsibilities and marketing rights.

Mature onshore fields offer opportunities to restore production using existing wells and infrastructure. GeoPark, for example, secured a 25-year contract for the Bare field in the Orinoco Belt.

The company plans to reactivate up to 1,100 wells and increase output to approximately 90,000 barrels per day by 2038.

Infrastructure and Offshore Gas Opportunities

Direct ministerial contracts and strategic alliances provide additional opportunities in oilfield services and infrastructure, including pipeline rehabilitation, export terminals and refinery upgrades.

Venezuela’s domestic refineries currently process around 350,000 barrels per day, with PDVSA targeting throughput of up to 600,000 bpd in 2027.

Achieving that goal would require investment to restore and upgrade processing capacity.

Offshore gas developments follow a separate licensing process. BP operates the second phase of the cross-border Loran field, holding an equal-share licence alongside Abu Dhabi-based XRG and Qatar’s UCC Oil and Gas Holding.

Revised Fiscal Terms Aim to Attract Capital

The updated investment framework includes revised fiscal terms intended to improve project economics. Regulations published in July cap royalties at 30 per cent and the integrated hydrocarbons tax at 15 per cent.

Combined rates vary by project type, reaching 20 per cent for greenfield developments, 25 per cent for extra-heavy oil, 30 per cent for non-producing brownfields and 35 per cent for producing brownfields.

Qualifying offshore projects and developments incorporating upgrading or refining infrastructure may receive reductions of up to five percentage points.

“Venezuela is seeing a lot of interest as a result of aggressive fiscal and regulatory changes that are making the country more attractive,” said Scott Gilbert, Non-Executive Chairman of Apertura Energy.

However, investors must also navigate regulatory and contractual requirements. CPPH operators need a locally incorporated entity, while early approval to market production can provide greater control over revenues. US companies must also structure agreements in line with applicable US Treasury general licences governing transactions with PDVSA, including payment arrangements and contract conditions.

The revised framework is expected to shape discussions between investors, PDVSA and the Ministry of Hydrocarbons as Venezuela seeks to secure new agreements and revive production.

The implementation of the new contractual and fiscal arrangements will be important in determining whether the country can translate its substantial hydrocarbon resources into sustained investment and higher output. -OGN/TradeArabia News Service