CARACAS – Venezuela’s state-owned oil company Petróleos de Venezuela (PDVSA) and TotalEnergies E&P New Ventures have signed a memorandum of understanding to explore strategic cooperation in the hydrocarbons sector, marking another step in renewed international interest in Venezuela’s oil industry.
The preliminary agreement was signed in Caracas by PDVSA President Héctor Obregón and TotalEnergies Senior Vice President for the Americas Javier Rielo during a ceremony at Miraflores Palace attended by acting President Delcy Rodríguez.
The memorandum establishes a framework under which the two companies can explore potential cooperation in hydrocarbons. However, no details have yet been disclosed regarding which oil fields could be involved, the potential investment amounts, project timelines or commercial terms.
As a result, the memorandum should not yet be considered a final production or exploitation agreement. It represents a formal step toward possible cooperation, with further negotiations required before concrete projects or investments can be confirmed.
The development comes as TotalEnergies has been exploring opportunities involving Venezuelan crude. In April, the French energy company indicated that it was working on a framework to market Venezuelan oil to the U.S. Gulf Coast.
Some of Venezuela’s heavy crude could potentially be processed at TotalEnergies’ Port Arthur refinery in Texas, which has a processing capacity of approximately 238,000 barrels per day.
The agreement with PDVSA also comes amid renewed interest from international energy companies in Venezuela, which holds some of the world’s largest proven oil reserves but has struggled for years with declining production, insufficient investment, deteriorating infrastructure and international sanctions.
For Caracas, attracting major international energy companies could provide capital, technical expertise and access to markets as the government seeks to increase crude production and revive an industry that remains central to Venezuela’s economy.
The involvement of a major European energy company such as TotalEnergies could therefore carry significance beyond the immediate memorandum. It signals that international companies are again examining opportunities in Venezuela as the country's energy sector undergoes changes.
However, the significance of the agreement will ultimately depend on what follows.
Memoranda of understanding can establish the basis for negotiations, but they do not guarantee investment or production. Key questions remain unanswered, including which assets TotalEnergies could participate in, how much it is prepared to invest, what contractual structure would apply and when any project could begin producing oil.
For now, the PDVSA-TotalEnergies agreement represents another indication that Venezuela is seeking to reopen its energy sector to international capital. Whether that renewed interest translates into substantial investment and higher oil production will depend on the contracts, financing and projects that follow.