US company to take over Venezuelan oilfields previously run by Chinese and Russian firms
A US firm will take over several oilfields in Venezuela that were previously operated by Chinese and Russian companies. The move comes after legislative reforms allowed greater private participation in state oil company PDVSA to reactivate the sector.
Venezuela's oil industry is entering a new phase as a US company takes over some oilfields that were previously managed by Chinese and Russian firms. The development comes after recent legislative reforms that allow greater private participation in state oil company PDVSA and are aimed at reviving the country's oil sector.
A photograph by Reuters' Leonardo Fernandez Viloria shows abandoned and deteriorated pumpjacks at a PDVSA field in Lake Maracaibo. The image highlights the poor state of some of the country's oil infrastructure. Meanwhile, residents of the oil hub Maracaibo in Zulia state remain uncertain about new investments.
The recent reforms open the door for private capital to take part in PDVSA's operations and form the backdrop for this handover. The fields in question were previously operated by Chinese and Russian companies, but now an American firm will take over. The identity of the US company and the terms of the takeover have not been disclosed. Locals and industry observers are waiting to see whether the change will bring fresh investment and help restore the sector.
