Shell Eyes Venezuelan Gas Ventures After January Hydrocarbon Law Overhaul
Shell CEO Wael Sawan said the company is in talks for gas projects in Venezuela after interim president Delcy Rodriguez overhauled hydrocarbon laws in January. He cautioned significant infrastructure upgrades are still needed to tap the world's largest oil reserves strained by years of underinvestment and U.S. sanctions.
1. Shell's Talks for Venezuelan Gas Projects
Since interim president Delcy Rodriguez revamped hydrocarbon laws in January to welcome foreign investment, Shell has entered discussions to develop gas facilities in Venezuela. CEO Wael Sawan described the progress as encouraging but emphasized these talks remain in early evaluation stages.
2. Infrastructure Upgrades and Investment Requirements
Venezuela’s pipelines and processing plants require extensive modernization after years of underinvestment and U.S. sanctions have constrained output. Industry estimates suggest that restoring peak production capacity could demand tens of billions of dollars in capital expenditures.