The Energy Regulation and Markets Review - Stikeman Elliott

Chapter 28
Venezuela
Arnoldo Troconis 1
I
OVERVIEW
With estimated proved crude oil reserves at 31 December 2011 of approximately 297.57
billion barrels, 2 Venezuela remains one of the most important oil-producing countries in
the world and a focus of interest for the oil and gas business community.
Despite the latest trend in policies implemented by the government, which
could have, to some extent, discouraged private participation in oil and gas activities,
companies in the oil and gas sector still monitor the developments of the market for
potential new projects or participation. In any case, these new policies have created new
spaces for participation that have been filled by new players that did not traditionally
participate in the Venezuelan oil and gas market.
The trend in government policy is well known to people familiar with the world
oil and gas markets. The Venezuelan government has taken control of upstream oil and
gas activities by modifying a previous oil and gas legal framework (in force prior to
2002) into one under which the government either directly (or with a minority private
participation) carries out upstream oil and gas activities. Additionally, in May 2009, the
government expanded such policy reserving the main activities concerning oil and gas
services to the state.
1 Arnoldo Troconis is a partner at D’Empaire Reyna Abogados.
2 ‘A recent announcement made by the Venezuelan minister of energy and petroleum stated
that Venezuela’s proven oil and gas reserves rose by 2.158 billion barrels to 297.57 billion
barrels at the end of 2011. The announcement of the minister specifies that over half of the
new reserves, 1.2 billion bbl, came from traditional crude producing areas such as Barcelona,
Barinas, Maracaibo, Maturin and Cumana and from condensates at the offshore Cardon IV
and Mariscal Sucre gas fields. An additional 948 million bbl of heavy oil reserves were added
from the Orinoco belt.’ Energy Intelligence, Oil Daily, 20 March 2012.
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