Venezuela Needs $58 Billion to Restore Crude Output to 1998 Levels

Venezuelan state oil company PDVSA would need $58 billion in investment to revive its crude production to the levels of 1998 before ex-President Hugo Chavez came to power, equivalent to 3.4 million barrels per day (bpd), a document seen by Reuters shows. In the February 2021 document entitled "Investment Opportunities," Petroleos de Venezuela's planning and engineering division said it was seeking capital investment from Venezuelan and foreign partners, mostly to recover and upgrade oil production infrastructure "under new business models." The main new partnership model PDVSA detailed in the document was the use of production services agreements (ASPs). Under these deals, contractors would finance 100% of operations in the oilfields and in return would receive a portion of the project's free cash flow as payment. The Venezuelan state would remain the full owner of the fields and the associated infrastructure. The crisis-stricken South American nation produced just 578,000 bpd of crude in March, according to figures the country provided to OPEC, well below the 2021 goal set in the document of 1.28 million bpd. Read more.