Venezuela's Oil Industry Sees Potential with New Joint Venture

By Enrique Cheang, E.C.V. & Asociados

A recently formed partnership, Gage Venezuela Holdings (GAGE), is targeting a comeback for Venezuela's oil sector. GAGE, a collaboration between Amos Global Energy (AGE) and Gramercy Funds Management, has announced a joint venture with Inelectra, a Venezuelan engineering and construction company.

This venture aims to develop oil and gas opportunities in the Gulf of Paria, located offshore Venezuela. Their focus will be on participating in existing projects, Petro Güiria and Petro Paria, which are part of Venezuela's Empresas Mixtas model (mixed companies).

Potential Benefits Highlighted

-Economic Recovery: Increased oil production is seen as a catalyst for Venezuela's initial economic recovery, potentially providing resources for long-term diversification.
-Lower Fuel Prices: Gramercy believes this venture could benefit the U.S. by lowering fuel prices for American consumers.
-Energy Security: The project is framed as contributing to global energy security and paving the way for a future energy transition.
-Environmental and Social Responsibility: The joint venture emphasizes its commitment to best practices regarding environmental, social and governance (ESG) matters.

Any investment activity by GAGE in Venezuela would require approval from both the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) and the Venezuelan government.