Exclusive-Venezuela suspends 19 oil, gas production-sharing contracts signed under Maduro government, sources say
By Marianna Parraga
HOUSTON, Feb 26 (Reuters) – Venezuela’s oil ministry has suspended 19 oil production-sharing contracts signed with private companies under the administration of President Nicolas Maduro, four sources with knowledge of the move told Reuters.
The suspension has so far had no impact on the country’s oil and gas production, sources said. They added that state oil giant PDVSA will sell crude oil produced under suspended contracts.
Caracas and Washington will review the contracts and may recommend canceling some, the sources said. The Venezuelan and US governments are reviewing the credentials of the companies that signed them, the sources added. Some of the companies are little known and the agreements were signed while Venezuela was under US rule. sanctions.
The US seized Maduro in January and took control of Venezuela’s oil exports and sales. Since then, the U.S. Treasury Department has issued licenses allowing some companies to trade Venezuelan oil and operate in the country’s oil and gas sectors.
Venezuela’s National Assembly passed a reform of the country’s hydrocarbon law in late January in a bid to facilitate foreign investment in its devastated oil industry. Under the reformed law, the government has six months to review existing contracts.
Venezuela’s oil ministry and the White House did not immediately respond to a request for comment.
(Reporting by Marianna Parraga in Houston, Erin Banco in New York and Reuters staff; Editing by Simon Webb and Nia Williams)
