Venezuela's Challenges in Attracting Foreign Oil Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 21 2026
0mins
Source: seekingalpha
- Insufficient Investment Appeal: ConocoPhillips CEO Ryan Lance stated that Venezuela's current hydrocarbon law fails to attract foreign investment, with a staggering 95% government take deterring potential investors, highlighting the urgent need for policy reform.
- Tax Policy Impact: Recent modifications to Venezuela's oil law still permit the government to impose royalties of up to 30% and taxes of 15%, which could further suppress foreign investment and hinder the revival of the country's oil production.
- Unfavorable Contract Terms: The proposed contract from PDVSA to foreign oil companies heavily favors the government in terms of arbitration, taxes, and deal termination, with Lance noting that it resembles contracts prior to the 2007 expropriation, indicating a lack of competitiveness.
- Government Pressure for Change: U.S. Interior Secretary Burgum is pressing Venezuela's acting President Delcy Rodriguez for necessary policy adjustments to attract foreign investment, boost oil output, and revitalize the mining sector, reflecting international concern for Venezuela's economic recovery.
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Analyst Views on COP
Wall Street analysts forecast COP stock price to rise
19 Analyst Rating
15 Buy
3 Hold
1 Sell
Moderate Buy
Current: 114.990
Low
98.00
Averages
115.67
High
133.00
Current: 114.990
Low
98.00
Averages
115.67
High
133.00
About COP
ConocoPhillips is an exploration and production company. Its Alaska segment primarily explores for, produces, transports and markets crude oil, natural gas and NGLs. The Lower 48 segment consists of operations located in the 48 contiguous states in the United States and the Gulf of Mexico. Canadian operations consist of the Surmont oil sands development in Alberta, the liquids-rich Montney unconventional play in British Columbia and commercial operations. The Europe, Middle East and North Africa segment consists of operations principally located in the Norwegian sector of the North Sea, the Norwegian Sea, Qatar, Libya, Equatorial Guinea and commercial and terminalling operations in the United Kingdom. Asia Pacific segment has exploration and production operations in China, Malaysia, Australia and commercial operations in China, Singapore and Japan. Other International segment includes interests in Colombia as well as contingencies associated with prior operations in other countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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