Rodriguez added that the agreement’s target of 1.5 million bpd was only an initial goal and that the broader plan also included the development of eight greenfield oil blocks as part of a wider expansion of the country’s energy sector.
Venezuela has the world’s largest proven oil reserves, but it produces only about 1.25 million bpd – far below its potential – after years of underinvestment, mismanagement and sanctions.
Rodriguez said the agreement could generate about US$209 billion in revenue for the Venezuelan state, based on a benchmark oil price of US$65 per barrel, though she acknowledged crude prices could fluctuate. She said roughly US$19 from each barrel produced and sold under the arrangement would flow directly to Venezuela, providing a significant boost to government revenue.
She said that the country retained “ownership of and sovereignty” over its natural resources, “while leveraging capital, technology and operational expertise to support the recovery of a strategic industry that has been severely affected by sanctions”.