A Proposal That Could Rejuvenate Venezuela's Ailing Oil And Gas Industry

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The CRESCII proposal which invites Caribbean countries to invest in Venezuela’s oil industry is a win-win for Caracas and couple open the doors to more stable hydrocarbon supply

A recent summit between the EU and the Community of Latin American and Caribbean States yielded an opportunity that could be a win-win for Caracas.

One important but under-reported development from the CELAC nations that merits European support resides in the CRESCII proposal, which would enable Caribbean nations to become co-owners of Venezuela's proven and drilled petroleum and gas fields. Once a consortium of participating Caribbean countries has been established, it would enter into negotiations with Venezuela over the specific fields to be made available, and both the size and the terms of the investment required. Although much will depend on the particular fields in question, technical assessments, and the speed of investment, it should be possible for production to begin within an 18-month timeframe.

For Venezuela’s embattled energy sector, the proposal would also build on the momentum of the recent agreement the country signed with European energy giants Eni and Repsol, which allows for the export of natural gas liquids - or condensates - to other markets. The deal comes after years of discussions with Italy’s Eni and Spain’s Repsol for an exporting permit on condensates, a by-product of the natural gas production operation in Cardon IV, a venture they jointly run.

 

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Belgique Dernières Nouvelles, Belgique Actualités

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