Matthew Goitia’s Plan to Revamp Venezuelan Terminals
Matthew Goitia, Director of Pelorus Terminals, outlines his initial idea to reform and build maritime terminals in Venezuela that can blend and export crude oil as well as transport chemical products. His ambitious plan, estimated to cost between $250 million and $1 billion, involves renovating an existing crude oil terminal in Venezuela, constructing a new petroleum terminal, and converting the old one to transport chemicals and other products. Additional considerations include adding storage tanks, renovating docks, and ensuring electricity supply—a process that could take between three to ten years.
There are numerous hurdles to overcome, and it remains unclear how to secure the necessary permissions from the US government for such endeavors. Any initiative in Venezuela will likely require support from local authorities and the state-owned oil company, PDVSA. Nonetheless, initial ideas are already emerging.
Houston’s Petroleum Industry Seeks a Piece of the Action
In offices scattered across Houston, the heart of the US petroleum industry, executives, entrepreneurs, and opportunists are exploring ways to tap into Venezuela’s vast oil reserves, estimated as the largest in the world. Goitia states, “Small players are willing to take the risk; Venezuela is the lost world.” He has already engaged in talks with two private equity investors and is organizing meetings with independent drillers who risk their own capital to explore untested wells.
Less than a month after the US intervention in Caracas to capture Venezuelan President Nicolás Maduro, the visions of a new oil boom are motivating Houston’s industry. US President Donald Trump aims to secure $100 billion in investment to reconstruct the country’s OPEC-member petroleum industry.
This enthusiasm is also resonating with larger corporations. Jeff Miller, CEO of Houston-based oilfield services giant Halliburton, reported to analysts during an earnings call that his phone “didn’t stop ringing” with inquiries about Venezuela. Although Halliburton left Venezuela in 2020 due to US sanctions, the company is now working on obtaining licenses that would allow its return.
Francisco Monaldi’s Perspective on Industry Enthusiasm
Francisco Monaldi, director of the Latin American Energy Program at Rice University’s Baker Institute in Houston, commented on the initial enthusiasm: “Everyone wants to be in motion.” He mentioned that the Department of Energy has organized meetings with explorers, including Continental Resources founder Harold Hamm and Hilcorp Energy founder Jeff Hildebrand, who attended a roundtable on Venezuela with Trump at the White House.
Continental and Hilcorp did not respond immediately to email requests for comment on the status of their discussions or proposals.
Uncertainty and Cautious Approach
Despite the excitement, no one knows the rules for investing and operating in Venezuela under US supervision. Some companies want to see more concrete plans from the US for a potential democratic transition in Venezuela that would provide a more stable political environment for their long-term investments.
“There are two groups of companies. Some are cautious and waiting for reforms, even a risk-free scenario to go there, while others act as if it’s another ‘gold fever,'” said Ali Moshiri, former Chevron head for Africa and Latin America and now CEO of Amos Global Energy in Houston. “Those who have been involved with Venezuela for a long time are trying to find a middle ground.”
J.P. Hanson, global director of oil and gas at investment bank Houlihan Lokey, stated that there are many conversations about Venezuela but that public and private investors still face significant uncertainty. “They will need a clear opportunity to own assets, know what they are investing in, and be assured that they can protect their assets,” he said at a Houston industry event.
Venezuelan Legal Reforms and International Interest
Venezuela’s National Assembly began debating a wide reform of its hydrocarbons law last week that would allow foreign and local companies to exploit oil wells independently through a new contract model. The pending changes could be an initial step towards allowing independent exploration and production companies, with updated contracts that offer greater flexibility than the current joint venture model.
Denver’s Role in Venezuelan Activities
Denver, Colorado, is also emerging as a center for Venezuela-related activity after several companies based there participated in Trump’s roundtable.
These include Raisa Energy, which acquires non-operating interests in energy assets and has a Venezuelan CEO; Tallgrass Energy, involved in processing, storage, and transportation with oil pipeline and terminal assets; and Aspect Holdings.
US oil companies could help restore Venezuelan production and prosperity and are willing to “get to work quickly,” said Alex Cranberg, Aspect’s president. He emphasized the need for long-term contracts and building trust for sustainable development in Venezuela’s prolific Orinoco heavy oil belt. Cranberg also highlighted potential for onshore and offshore exploration, as modern technology could unlock previously unaccounted oil and gas resources.
“We need realistic and reliable contractual agreements and security arrangements. We need technical data, a lot of it,” Cranberg added in an email response to Reuters queries.
Trump has told executives they would “deal directly with us” and not with Venezuela, but it remains unclear which US agencies would handle licenses and contract approvals or when sanctions prohibiting Venezuelan oil trade might be lifted.
Currently, any US company wishing to operate in Venezuela’s petroleum sector needs a license or sanction exemption from the US Department of the Treasury, and international banks cannot operate there under existing sanctions. Many legal changes would also be required in Venezuela before companies could invest, according to attorneys.
Washington’s Push for Industry Action
Trump and Energy Secretary Chris Wright aim to get the industry moving. “They are in a hurry, as the President told Wright to hurry, and Wright, of course, is trying to comply,” Monaldi said. However, realistically, most of the quick gains in Venezuelan oil production would likely come from Chevron’s operations—the only US energy company with a license to operate there.
The atmosphere in PDVSA offices in Caracas and across the country has shifted rapidly since the company announced progress in negotiations with the US. Executives are eagerly arranging meetings with foreign oil executives on production, exports, energy supply, and business opportunities, according to sources.
Emil Calles Lossada, general director of Caracas-based Venergy Global, which gathers commercial information for companies interested in investing, reported a surge of interest from businesses studying Venezuelan opportunities. However, current sanctions deter most, so easing restrictions and enacting legal reforms in Venezuela is necessary, he added.
Key Questions and Answers
- What is Matthew Goitia’s plan for Venezuela? Goitia aims to reform and build maritime terminals in Venezuela that can blend and export crude oil while transporting chemical products. His plan involves renovating an existing terminal, constructing a new petroleum terminal, and converting the old one for chemical transportation.
- What challenges do investors face in Venezuela? Investors face uncertainty regarding investment and operation rules under US supervision. They also need clear contractual agreements, security arrangements, and technical data to protect their assets.
- How are US companies positioning themselves in Venezuela? US oil companies, like Halliburton and Chevron, are eager to help restore Venezuelan production and prosperity. They seek long-term contracts, trust-building, and updated contract models for greater flexibility.
- What role do legal reforms play in attracting foreign investment? Legal reforms, such as Venezuela’s proposed hydrocarbons law changes, could enable independent exploration and production companies to operate more flexibly.
- Why is Denver becoming a center for Venezuela-related activities? Companies based in Denver, like Raisa Energy and Tallgrass Energy, are participating in discussions about potential opportunities in Venezuela following Trump’s roundtable.
