Venezuela considers granting oil & gas development rights to BRICS countries

Venezuelan President Nicolas Maduro has suggested that Venezuela may transfer the rights to develop its oil and gas resources to BRICS countries.

According to Maduro, if "all these people in the north and their partners in the world make the mistake of a lifetime," the development permits for Venezuela's oil and gas fields, which have already been signed, could be handed over to BRICS allies, Caliber.Az reports, citing foreign media.

Maduro emphasized that BRICS represents a significant market for Venezuelan producers. As Venezuela seeks to enhance its export potential, BRICS is seen as a secure market offering favorable prices. BRICS, initially consisting of Brazil, Russia, India, and China, has expanded to include South Africa, and more recently, Egypt, Ethiopia, Iran, and the United Arab Emirates. Venezuela, among other countries, has shown interest in joining the group.

“If these people up north and their partners in the world make the mistake of their lives, then those oil blocks and those gas blocks that were already signed up [for US companies] will go to our BRICS allies,” Maduro stated, accusing Washington of leading efforts to destabilize his country.

Venezuela holds an estimated 303 billion barrels of crude oil, representing about 17% of global reserves, according to the International Energy Agency (IEA). It is listed as having the world's largest proven oil reserves.

Chevron, the only American energy major still operating in Venezuela, received a license to pump oil in November 2022, following a sanctions waiver. This arrangement allowed for the release of some of Venezuela’s oil proceeds that had been frozen due to US sanctions. Chevron is currently engaged in four onshore and offshore projects with the state-controlled oil giant Petroleos de Venezuela (PDVSA) and aims to boost output by 35% year-on-year through new wells.

Recently, the White House recognized opposition figure Edmundo Gonzalez Urrutia as the winner of Venezuela’s presidential election, despite official results showing Maduro’s victory. Maduro has criticized Washington's involvement, describing the protests that followed the election results as an attempted “coup.”

Russian President Vladimir Putin congratulated Maduro on his re-election, and Kremlin spokesman Dmitry Peskov urged Venezuela’s opposition to accept the outcome and avoid destabilization attempts by external forces. Venezuelan Foreign Minister Yvan Gil Pinto confirmed earlier this week that Maduro has been invited to the BRICS summit in October, which will be held in Kazan, Russia.