Venezuelan Oil Deal Shakeup: Maduro-Era Contracts Under Review

The Venezuelan government has put a hold on 19 oil production-sharing contracts that were initiated under President Nicolas Maduro, according to sources familiar with the matter. The pause in contracts, however, has yet to impact the nation’s oil and gas output.

PDVSA, the state oil giant, has maintained operations by selling crude derived from these agreements despite their suspension. The contracts are under scrutiny by Caracas and Washington, both of whom may propose annulment depending on the evaluation of the firms involved, many of which are relatively unknown and aligned under previous U.S. sanctions.

In a strategic move earlier this year, the U.S. took Maduro into custody, asserting authority over Venezuela's oil exports. Subsequently, licenses have been issued to selected companies allowing trade and operation within the sector. A legislative reform in January has set a six-month review period for broader industry contracts seeking to attract foreign investment.