US Urges Oil Companies to Invest in Venezuela to Recover Billions in Owed Funds

The United States has urged major oil companies to commit substantial new investments in Venezuela if they hope to recover billions of dollars owed for assets nationalised nearly two decades ago, according to people familiar with the matter.

U.S. officials have privately told executives from companies including Chevron, Exxon Mobil and ConocoPhillips that repayment of long-standing arbitration awards is unlikely without fresh capital being injected into Venezuela’s ailing oil sector. The message reflects Washington’s view that rebuilding production capacity is essential before creditors can expect meaningful repayments, the sources said .

Venezuela owes U.S. energy companies large sums following expropriations under former president Hugo Chávez. ConocoPhillips alone has outstanding arbitration claims of around $12 billion, while Exxon Mobil is owed about $1.6 billion, awards that have proved difficult to enforce amid years of sanctions and political turmoil .

The push comes as Venezuela’s oil industry, once among the world’s largest, struggles with years of underinvestment, mismanagement and infrastructure decay. Although the country holds the world’s largest proven crude reserves, output remains far below historical levels, limiting the government’s ability to service debts .

Companies have responded cautiously. Chevron, which has maintained limited operations in Venezuela under U.S. licences, has not committed to major new spending. ConocoPhillips and Exxon Mobil have said they are monitoring developments but have made no public pledges to invest.

Analysts say any significant recovery in production would require billions of dollars and several years, leaving oil majors to weigh the commercial risks of investing in a politically fragile environment against the possibility of finally recovering long-delayed payments.

For Washington, the strategy reflects a broader effort to stabilise Venezuela’s energy sector while aligning corporate interests with the country’s economic recovery. For oil companies, it presents a difficult choice: invest first and hope for repayment later, or risk seeing arbitration awards remain unpaid indefinitely .