(Sept 20): Venezuela and TotalEnergies SE signed a memorandum of understanding on Saturday, setting up the French company for a return to operations in the South American country.

Acting President Delcy Rodríguez led the ceremony in Caracas, where Petroleos de Venezuela SA president Héctor Obregón and Francisco Javier Rielo, TotalEnergies senior vice-president for the Americas, signed the energy cooperation agreement, according to a government statement.

The French oil giant’s unit TotalEnergies E&P New Ventures will take part in energy projects, according to the statement.

Rodríguez said Venezuela established reliable legal conditions for new investments thanks to the hydrocarbons law approved earlier this year after the US capture and ouster of former president Nicolás Maduro. 

US President Donald Trump last month announced a plan to take majority control over a huge portion of Venezuela’s oil wealth in an unprecedented maneuver. The plan has come under criticism on concern that the nation could become a modern-day resource colony akin to the so-called banana republics of a century ago, which may create long-term risks for oil companies operating there.

Earlier this month, Venezuela and the US announced oil partnerships with major oil companies including Chevron Corp, GE Vernova Inc and Eni SpA aimed at boosting crude production. The deals represent “tens of billions” of investments, US Energy Secretary Chris Wright said at the signing ceremony.

The US government also negotiated a 35% stake in Venezuelan Alejandro Betancourt’s North American Blue Energy Partners. The deals represent the most significant capital investment by energy companies into the country since the capture of Maduro.

TotalEnergies, along with partner Equinor, quit the Petrocedeno oil project amid an exodus of foreign firms in 2021. At the time, chief executive officer Patrick Pouyanne said the move was not related to the country’s political situation and that the decision was in line with company plans to curb its carbon footprint.

TotalEnergies later abandoned its natural gas operations in Venezuela, pulling out of its majority stake in YPergas SA. Before its departure, the company had operated in the country since the 1990s.

Uploaded by Magessan Varatharaja