Machado Pitches 25-Year Oil Deals as Conoco Demands $12B

Machado Proposes 25-Year Concessions to Revive Oil Sector

Venezuelan opposition leader María Corina Machado outlined a plan to offer foreign companies oil extraction concessions for up to 25 years, in a direct appeal to global energy executives at the CERAWeek conference in Houston. The proposal aims to attract the massive private investment needed to rebuild the nation's dilapidated energy sector and leverage its vast crude reserves, which are among the largest in the world. Machado's pitch frames a future Venezuela as a reliable, rules-based energy partner for the Western Hemisphere, a sharp contrast to its recent history.

Oil Majors Withhold Investment, Citing $12B Unpaid Claim

Despite the ambitious vision, Machado's proposal was met with immediate and firm skepticism from the industry leaders she sought to attract. ConocoPhillips CEO Ryan Lance stated unequivocally that his company will not reinvest in Venezuela until there is a clear path to recover the approximately $12 billion owed from the 2007 asset expropriations under former President Hugo Chavez. Lance dismissed recent reforms to the country's oil laws under the current interim government as "woefully inadequate," a sentiment echoed by other majors like Exxon Mobil who previously had their assets seized. These firms have made it clear that substantial political and legal reforms are non-negotiable prerequisites for their return.

Political Instability Halts Billions in Potential Investment

The fundamental obstacle for investors is Venezuela's fractured political landscape. Machado's proposals, while attractive on paper, originate from her position as an opposition leader without the authority to enact them. For capital-intensive energy projects with multi-decade timelines, this uncertainty is a critical flaw. Ryan Lance highlighted the need for "policy durability" from both Venezuela and the U.S., ensuring that contracts and legal protections can survive future administrative changes. Until Venezuela can establish a stable, unified government capable of guaranteeing long-term legal and financial certainty, ambitious investment plans will remain stalled.