TotalEnergies Prepares Return to Venezuela's Energy Sector After Five-Year Absence
Caracas, Tuesday, 22 September 2026.
French energy giant TotalEnergies signed an agreement with Venezuela’s state oil company, signaling a potential return to the nation five years after abandoning its local operations.
Details of the Memorandum of Understanding
On Saturday, September 19, 2026, TotalEnergies E&P New Ventures executed a Memorandum of Understanding (MoU) with state-owned Petróleos de Venezuela (PDVSA) at the Miraflores Palace in Caracas [1][3]. The ceremony was overseen by Acting President Delcy Rodríguez, with Francisco Javier Rielo, senior vice president for the Americas at TotalEnergies Exploration & Production, signing on behalf of the French corporation [3][4]. PDVSA President Héctor Obregón signed for the state oil firm, marking a formal step toward re-establishing operations in the region [3]. Officials described the agreement as a framework designed to establish legal and diplomatic groundwork rather than a binding operational deal with immediate financial commitments [3]. No specific project locations or capital allocation figures were disclosed at the time of signing, as asset allocations are to be negotiated separately in the coming months [3].
Historical Context and Regulatory Hurdles
This agreement signals a potential return for TotalEnergies to Venezuela five years after the company divested its local assets [2]. During 2021, the energy major sold its minority stake in the heavy oil joint venture Petrocedeño to PDVSA [2]. At that time, the company also divested its interest in the Yucal Placer gas field and relinquished the undeveloped Plataforma Deltana Block 4 license [2]. Despite the new MoU, TotalEnergies does not currently hold a license from the U.S. Treasury’s Office of Foreign Assets Control (OFAC) to operate in Venezuela [2]. The legal framework for such private-sector participation was enabled earlier in February 2026, when the National Assembly overhauled the Organic Hydrocarbons Law [1].
A Surge in Foreign Capital
The TotalEnergies agreement follows a concentrated wave of international dealmaking as other majors secure positions in the reopening market [1]. U.S. independent Continental Resources signed an agreement for the Ayacucho 2 block on September 16, 2026, targeting an estimated 30 billion barrels of oil resource [1]. Italy’s Eni secured a 25-year production-sharing contract for the Junin-5 field earlier in September 2026, with a $1.5 billion investment target and a production goal of 400,000 barrels per day by 2030 [1][2]. Chevron has committed over $7 billion to be invested over five years across its Venezuelan joint ventures, aiming for an output target of approximately 600,000 barrels per day [1][2]. Additionally, Colombia-based GeoPark entered via a 25-year production participation contract for the Bare block, securing a 65% net working interest [1].
Strategic Outlook for 2027
These developments set the stage for Venezuela Energy Week (VEW) 2027, scheduled to take place in Caracas from February 22 to February 25, 2027 [1]. The conference, supported by the Ministry of Hydrocarbons and PDVSA, aims to assess the national project pipeline following this influx of capital [1]. In April 2026, TotalEnergies CFO Jean-Pierre Sbraire reported the company was nearing trading contracts for Venezuelan heavy crude destined for the Port Arthur refinery in Texas [1]. The refinery holds a capacity of 238,000 barrels per day, indicating potential downstream integration for future production [1]. Infrastructure support is also expanding, with GE Vernova forming strategic alliances with PDVSA and Corpoelec to restore electrical infrastructure for the petroleum sector [1].