Venezuela’s oil ministry has suspended 19 oil and gas production-sharing contracts that were signed with private companies during the administration of former president Nicolás Maduro, according to sources familiar with the development. The decision forms part of a broader review of agreements concluded at a time when the country was operating under stringent international sanctions. Authorities in Caracas, along with officials in Washington, are now examining the background and credentials of companies that secured these contracts, with the possibility that some agreements may ultimately be revoked.
Despite the suspension, Venezuela’s oil and gas production has not been affected so far. State-run oil company PDVSA continues to sell crude extracted under the suspended contracts, ensuring that output and exports remain stable during the review process. Officials indicated that the evaluation is procedural in nature and aimed at ensuring compliance and transparency rather than immediately halting operations.
The contracts under scrutiny span multiple types of projects, including newly operational fields in Lake Maracaibo, expansion initiatives in the resource-rich Orinoco Belt, and smaller mature oilfields. Many agreements were signed with relatively lesser-known firms after major global oil companies avoided investments in Venezuela due to sanctions risks and concerns stemming from earlier nationalisations. In some instances, companies reportedly outsourced operations to contractors, further complicating oversight.
The move comes amid wider reforms in Venezuela’s hydrocarbon sector intended to attract foreign investment and stabilise the country’s struggling oil industry. A recently amended hydrocarbons law allows the government a six-month window to reassess existing contracts while encouraging renewed partnerships. At the same time, PDVSA has been holding discussions with traditional joint-venture partners to expand production capacity and improve long-term output prospects.
Overall, the suspension reflects an effort by Venezuelan authorities to reassess past agreements, strengthen regulatory control, and restructure the oil sector while maintaining uninterrupted production and exports during the transition period.
