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Democratic Government Key to Venezuela Oil Investment, Opposition Leader Says
Several energy companies agreed to expand work in Venezuela.
The country produces about 1.25 million barrels of oil each day.
That is much less than it produced in the late 1990s.
Venezuela’s interim president and the U.S. energy secretary watched the signing ceremony.
Opposition leader Maria Corina Machado said investors need a serious democratic government.
She said such a government would make investments safer and more predictable.
U.S. officials defended a separate oil agreement with Venezuela.
Machado said it was unclear who signed that agreement and what Venezuelans would gain.
The United States and Venezuela are trying to rebuild the country’s oil industry, according to the report.
Eni, GE Vernova and Chevron committed to expanding Venezuelan energy projects.
The signings were overseen by interim President Delcy Rodriguez and U.S. Energy Secretary Chris Wright.
Venezuela produces about 1.25 million barrels per day, below its late-1990s peak of 3 million.
Maria Corina Machado said only a serious democratic government can provide investors with stability and security.
She questioned the scope and benefits of a separate U.S.-Venezuela deal granting Washington access to 17 oilfields.
- Who
- International energy companies including Eni, GE Vernova and Chevron; interim President Delcy Rodriguez; U.S. Energy Secretary Chris Wright; and opposition leader Maria Corina Machado.
- What
- Energy companies committed to expanding Venezuelan projects, while Machado argued that democratic government is necessary for stable, long-term investment.
- Where
- Venezuela, with a separate agreement involving Caracas and Washington.
- When
- The signings occurred on Wednesday; Machado’s comments were reported on September 3.
- Why
- The stated aim is to attract investment and help revive Venezuela’s struggling oil industry, while Machado said political legitimacy is needed to reduce investment risk.
Machado’s Concerns
U.S. Officials’ Position
Political conditions for investment
Machado’s Concerns
Maria Corina Machado said only a legitimate, serious democratic government can provide the stability, security and certainty needed for sustained investment.
U.S. Officials’ Position
U.S. officials have defended cooperation on Venezuela’s oil sector as part of aligning its energy industry with the United States and rebuilding the country.
Timing of elections
Machado’s Concerns
Machado’s demand for democratic legitimacy reflects her rejection of the political conditions under which the current oil arrangements are being developed.
U.S. Officials’ Position
U.S. officials, including Secretary of State Marco Rubio, said the time is not yet right for elections.
Scope and benefits of the oil deal
Machado’s Concerns
Machado said the true scope of the Caracas-Washington agreement was unclear, including its signatories, guarantees and benefits for Venezuelans.
U.S. Officials’ Position
U.S. officials have presented the agreement as part of a broader effort to rebuild Venezuela and develop its energy industry.
Key facts
- Venezuela’s current oil output
- About 1.25 million barrels per day.
- Late-1990s production peak
- About 3 million barrels per day.
- Companies named in the signings
- Eni, GE Vernova and Chevron.
- Officials overseeing the ceremony
- Interim President Delcy Rodriguez and U.S. Energy Secretary Chris Wright.
- Separate U.S.-Venezuela deal
- The agreement gives the United States access to 17 oilfields.
- Machado’s central argument
- A serious, democratic government is needed to provide profitability, certainty and security for investors.
- Election dispute
- International observers criticized the official 2024 presidential election results, while Machado’s movement said it won and Venezuelan authorities declared Nicolas Maduro the winner.
Quotes
Maria Corina Machado
Venezuelan opposition leader and Nobel Peace Prize winner
“We need to attract capital and sustained, long-term investment under conditions that provide profitability, certainty and security, while delivering a real reduction in Venezuela’s country risk.”
theprint.in
“That is only possible with the legitimacy and stability provided by a serious, democratic government.”
theprint.in
Sources
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