Billionaire Texas oilman inks deal with Venezuela's state-run oil giant as U.S. sanctions loom
A company started by a Texas billionaire oilman has announced a deal with Venezuela’s state-owned oil company to rehabilitate five aging oil fields
MIAMI — A company started by a Texas billionaire oilman announced a deal Wednesday with Venezuela's state-owned oil company to rehabilitate five aging oil fields, days after the Biden administration put a brake on sanctions relief over concerns about the fairness of the country's upcoming presidential election.
LNG Energy Group is a publicly traded company listed in Canada that produces natural gas in Colombia. It was created last year as a result of a merger with a company owned by Rod Lewis, a legendary Texas wildcatter who Forbes Magazine once called the “only gringo allowed to drill in Mexico."
As part of the deal announced Wednesday, LNG was awarded contracts by state-run PDVSA to take over production and develop two oil fields in eastern Venezuela that currently produce about 3,000 barrels of crude per day.
LNG said the deal was executed within the framework of sanctions relief announced by the U.S. government last year in support of an agreement between President Nicolas Maduro and his opponents to hold a competitive presidential election this year. Last week, the Biden administration reimposed sanctions as hopes for a democratic opening in Venezuela fade.
However, the White House left open the possibility for companies to apply for licenses exempting them from the restrictions, something that could attract investment to a country sitting atop the world's largest petroleum reserves at a time of growing concerns about energy supplies in the wake of Russia's invasion of Ukraine.
Other than Chevron, which has operated in Venezuela for a century and was awarded its own
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