Is it prudent to reenter Venezuela oil projects now?

Proceed only with stage-gated steps. Start with desktop due diligence, counterpart vetting, and legal opinions. Avoid material spend until there is clarity on the detention case, permits, and contract enforceability. Keep plans flexible, set exit triggers, and secure insurance and compliance support before any field activity.

How does the arrest affect PDVSA reform prospects?

It increases perceived political risk and may slow reform momentum. Authorities must show clear and predictable rules to restore confidence. Investors will look for transparent contract templates, payment safeguards, and dispute mechanisms. Without those, credit, insurance, and board approvals will likely remain tight and timelines will stretch.

What due diligence steps should U.S. firms prioritize?

Map beneficial owners, screen all parties, and obtain country-specific legal advice. Stress test payment security, shipping insurance, and license needs. Require audit rights, stabilization clauses, and suspension options. Prepare crisis and exit plans in advance. Only release capital when legal signals and contract protections meet internal risk thresholds.

What could reduce Venezuela political risk for energy investors?

Reliable due process in the Romero case, transparent PDVSA reform decrees, standardized contracts, and consistent public guidance from regulators would help. Added comfort comes from credible third-party monitoring, workable arbitration venues, and stable shipping insurance. Together, these signals can lower uncertainty and support phased reentry.

Law and Government

Venezuela Oil Outlook, February 17: Arrest of U.S. Adviser Jolts Reentry Plans

ByDanny Kontos February 18, 2026

Venezuela oil risk spiked after authorities detained Evanan Romero, an 86-year-old U.S.–Venezuelan adviser tied to talks with major producers. The move, days after a U.S. Energy Secretary visit, shakes confidence in reentry plans. We see higher Venezuela political risk, a slower PDVSA reform path, and rising foreign investment risk. For U.S. investors, this could delay supply reactivation, push out timelines for contracts, and add compliance costs. Today’s focus is contingency planning, staged due diligence, and clear go or no-go gates tied to legal signals.