Venezuela’s Oil Industry Fears Losing Ground in Sanctions Return

While Venezuela’s President Nicolas Maduro is betting that the US will not revive all its sanctions amid backsliding on free elections, local operators remain concerned, according to Bloomberg.

• Oil and gas firms fear that nascent deals for everything from imports of construction equipment to connections with US banks will be annulled. This in turn will hit production.
• Reimposed sanctions could fall around 30% to 600k b/d in, according to Rapidan Energy.
• Four oil industry executives who spoke anonymously to Bloomberg said the renewed tensions are making them wonder whether their recent investments will be squandered.
• Moreover, the gas supply deal between Trinidad’s state-owned National Gas and Shell, in addition to Repsol’s recent deal, are in doubt if sanctions return.
• However, Trinidad claimed it had received assurances from the US that its deal would still stand if sanctions returned, Bloomberg reported.