Swedish investment platform Maha Capital is seeking approval from U.S. authorities to enter the Venezuelan oil sector through an indirect minority stake in a company controlled by Petróleos de Venezuela (PDVSA), according to sources within the firm.
Potential Foreign Investment in Venezuelan Oil
Paulo Thiago Mendonca, chairman of Maha’s board, stated the company has until May to decide whether to exercise an option to acquire a majority stake in a subsidiary of Novonor, which owns 40% of PetroUrdaneta. PetroUrdaneta holds undeveloped oil assets in Venezuela.
If completed, this would mark one of the first entries of a foreign firm into the Venezuelan oil industry following the capture of Nicolás Maduro in early January, an event that prompted investment promotion by U.S. President Donald Trump.
Mendonca emphasized the need for a “green light” from Washington before proceeding, stating, “We are closely following the indications of the United States to see how to proceed.”
PetroUrdaneta is currently a joint venture, with PDVSA holding a 60% share.
Potential for Growth
Mendonca believes Venezuela presents “gigantic opportunities” for oil companies, referencing statements by interim President Delcy Rodríguez regarding a possible reform of the Hydrocarbons Law. Rodríguez suggested this reform could attract new capital and investment to the sector.
While the projected investment amount by Maha has not been publicly announced, the plan focuses on developing historically profitable oil fields. PetroUrdaneta is estimated to still hold hundreds of millions of recoverable barrels, despite current production levels being significantly below their historical peak.
This move occurs amid regulatory changes and potential sanctions licenses issued from Washington, aiming to gradually open Venezuela’s energy industry to foreign private capital after years of restrictions.
Frequently Asked Questions
What is Maha Capital’s current status?
Maha Capital is currently seeking approval from U.S. authorities to make an indirect minority investment in a PDVSA-controlled company.
What is PetroUrdaneta?
PetroUrdaneta is a company with undeveloped oil assets in Venezuela, currently owned 40% by Novonor and 60% by PDVSA.
What is the timeline for Maha Capital’s decision?
Maha Capital has until May to decide whether to exercise an option to acquire a majority stake in a subsidiary of Novonor, which owns a portion of PetroUrdaneta.
How might the potential reform of Venezuela’s Hydrocarbons Law impact future foreign investment in the country?
