Maduro’s arrest opens a new cycle of uncertainty over control of Venezuela’s oil production, with PDVSA, Chevron and international players repositioning themselves in the face of possible political developments

Nicolas Maduro’s arrest is bringing one of the world’s most politically charged oil industries back into the spotlight, forcing investors to reconsider who controls Venezuela’s oil resources and whether they can indeed resurgent after decades of decline.

For now, the answer seems clear. “Petróleos de Venezuela (PDVSA), the state oil company, controls the vast majority of oil production and reserves,” said Andy Lipow, president of Lipow Oil Associates.

U.S. energy company Chevron operates in the country through its own operations and a joint venture with PDVSA, while Russian and Chinese companies are also involved through partnerships, “but primary control remains with PDVSA,” he noted. Lipow.

“If Trump succeeds in forming a more pro-American and investment-friendly government in Venezuela, Chevron is in the best position [to strengthen its grip on Venezuelan oil], as it already has a strong presence there,” said Sol Kavonic of MST Financial. /tesheshi.com/

Source: prizrenpost