Venezuela Signs Deal With US Company to Improve Oil Production

Venezuela has signed an agreement between the state-owned oil company Petroleos de Venezuela, PDVSA, and a U.S. oil company, which is intended to improve oil production in the South American country.

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The document was signed by the Minister of Popular Power for Petroleum, Nelson Martinez, and the chairman of Oklahoma-based Horizontal Well Drillers, Todd Swanson, at the Miraflores Palace in Caracas.

The agreement proposes a joint venture for the development of oil in Venezuela. Martinez announced that the deal will include an initial investment of US$200 million for a three-year project, which will eventually be expanded to US$1.3 billion.

“We discussed the creation of two work teams to initiate in the next 90 days a joint plan identifying opportunities, defining levels of investment and creating at least one joint venture in that time,” Martinez said.

During the ceremony, Venezuelan President Nicolas Maduro said the strategic alliance will strengthen the technology of the PDVSA.

He added that Venezuela is a country whose Constitution and laws create conditions of security and legal stability for these agreements, citing deals signed with China, India, Russia and other nations as examples. 

“I invite all U.S. capital in all areas of economy and energy to come to Venezuela. We are ready to broaden the horizons of all investments,” Maduro said.

Maduro also reiterated his willingness to establish respectful relations with U.S. President Donald Trump, despite political and ideological differences.

"I hope the gates will open for a relationship of respect and height between the United States and the Venezuelan government.”