Venezuela dangles oil and gas resources at BRICS

The energy-rich nation has threatened to transfer the development rights to its fields to allies 

Venezuela could transfer the development rights to its vast oil and gas fields that are currently operated by American energy companies to entities from BRICS nations, President Nicolas Maduro warned on Friday during a press conference in Caracas. 

BRICS originally comprised Brazil, Russia, India, and China before subsequently adding South Africa and, at the beginning of this year, Egypt, Ethiopia, Iran, and the United Arab Emirates. Numerous other countries, including Venezuela, have expressed interest in joining the group. 

“If these people up north and their partners in the world make the mistake of their lives, then those oil blocks and those gas blocks that were already signed up [for US companies] will go to our BRICS allies,”  Maduro said, adding that Washington was at the forefront of plans to destabilize his country.

With an estimated 303 billion barrels, Venezuela accounts for approximately 17% of global reserves of crude oil, according to the International Energy Agency (IEA), which lists the Bolivarian republic as having the world’s largest proven oil reserves.

Chevron, the only American energy major still operating in Venezuela, scored a license to pump oil in the country in November 2022, a month after a sanctions waiver was implemented. This came in exchange for the unblocking of some of Caracas’ oil proceeds that had been frozen by US sanctions. 

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Chevron is currently involved in four onshore and offshore projects in Venezuela through a partnership with state-controlled oil giant Petroleos de Venezuela (PDVSA). Earlier this year, the US company announced the goal of increasing output by 35% year-on-year by bringing new wells online.

Earlier this week, the White House recognized Western-backed opposition figure Edmundo Gonzalez Urrutia as the winner of Venezuela’s presidential election on Sunday, despite the official results showing incumbent Maduro having won. The Venezuelan leader has urged Washington to “keep its nose out of Venezuela,” saying that the protests that erupted in the country after the results were announced were an attempted “coup.” 

Russian President Vladimir Putin congratulated Maduro earlier this week on being reelected. Kremlin spokesman Dmitry Peskov said on Thursday that Venezuela’s opposition should admit defeat and congratulate the winner. He added that it is important for Venezuela to avoid attempts at destabilization orchestrated by third countries, and to remain free of outside meddling.

Earlier this week, Venezuelan Foreign Minister Yvan Gil Pinto confirmed that Maduro had received an invitation to take part in the BRICS summit scheduled for October in the Russian city of Kazan.