Following a US military operation that captured Venezuelan President Nicolas Maduro, the country's political situation remains in flux, with Vice President Delcy Rodriguez assuming the role of Interim President. The US navy established a blockade around main ports, and state oil company PDVSA halted production, freezing crude exports.

Operations of International Oil Companies

Western operators Chevron, Eni, and Repsol have maintained their activities with limited disruption. Chevron, the only foreign major licensed to export Venezuelan crude, reports uninterrupted operations from its joint ventures, which produce up to 200,000 barrels per day. Both Eni and Repsol confirmed their operations, which are focused on gas production for the domestic power generation market, have continued unaffected. Repsol employs about 140 staff in the country.

Historical Financial Arrangements and Current Constraints

Until May of the previous year, specific OFAC licenses allowed Repsol and Eni to monetize gas supplies through swap arrangements involving the lifting of PDVSA crude cargoes and the import of refined products. These licenses were revoked by US authorities between March and May of 2025, halting all such cargo lifts. Both European companies have outstanding credits accrued with PDVSA over years, part of which was recovered through swap agreements between 2019 and 2025. They have not commented on the likelihood of recovering the remaining debt in a post-Maduro scenario.

Investment Needs and Production Outlook

Following Maduro's capture, there have been calls for massive investment to revamp Venezuela's aging oil infrastructure, with an estimated $183 billion needed over decades to restore production to its late-1990s level of over 3 million barrels per day. In 2025, production was around 1.1 million bpd, with exports under 900,000 bpd, accounting for less than 1% of global supply.