CARACAS – Energy giant Shell plc has signed several agreements with Venezuela’s new government aimed at launching oil and gas projects in the South American country.
The deals mark a significant step in efforts to revive Venezuela’s struggling energy sector and reopen the industry to Western companies. The agreements include plans for offshore natural gas developments and onshore oil projects, according to reports from Venezuelan state media and international news agencies.
Shell also signed cooperation agreements with Venezuelan engineering company VEPICA as part of the initiative.
Venezuela’s energy sector has suffered years of underinvestment, sanctions and deteriorating infrastructure, despite the country holding some of the world’s largest proven oil reserves. The new agreements are part of broader reforms introduced by the government to attract foreign investment and modernize production.
The developments follow major political changes in Venezuela earlier this year. Former president Nicolás Maduro was captured in a U.S. military operation in January, after which a transitional government led by acting president Delcy Rodríguez took power.
U.S. officials have since increased diplomatic engagement with Caracas. During a recent visit, U.S. Interior Secretary Doug Burgum met with Venezuelan leaders and promoted greater foreign investment in oil and mining projects.
Venezuelan state television described the agreements with Shell as “a decisive step toward strengthening the country’s energy industry,” while military broadcaster TV FANB called the partnerships a strategic alliance demonstrating that Venezuela remains an attractive destination for international investment.
Shell said it intends to work closely with local partners and that the projects could contribute to economic development and job creation in Venezuela.
The renewed energy cooperation comes as Venezuela attempts to rebuild its oil sector and reposition itself as a major supplier in global energy markets after years of political and economic turmoil.