The Energy Regulation and Markets Review - Stikeman Elliott

Venezuela
VIi
CONCLUSIONS and OUTLOOK
It seems that PDVSA will continue to be required by the central government to fund
and manage the social-related activities it currently undertakes. If so, it seems likely that
PDVSA will need to continue to seek partners to help it fund, manage and operate the
development of its massive reserves.
Consequently, Venezuela remains a very important oil and gas country and
investors will continue to monitor opportunities in the country; however, the result of
arbitrations against PDVSA and Venezuela need to be reviewed, including their impact
on future investments in Venezuela.
‘Below ground’ risks in Venezuela are substantially lower than those of other more
up-and-coming oil players such as Angola and Brazil. ‘Above ground’ risks in Venezuela
may start to be mitigated out of PDVSA’s need for new partners and financing.
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