Chevron’s CEO, Mike Wirth, believes Venezuela must implement further reforms to its hydrocarbons law before major foreign investment can take place. While recent legal changes are seen as a positive step, they are considered insufficient to attract the large-scale capital needed to revive the country’s struggling oil sector.
Wirth acknowledges that Venezuela has made progress by introducing reforms that grant foreign companies greater operational flexibility, including more autonomy in managing projects and exporting oil. However, he stresses that key issues remain unresolved. In particular, there is still a lack of clarity around fiscal terms, such as taxes and royalties, as well as the absence of strong legal guarantees for investors.
One major concern is the need for access to international arbitration, which would provide companies with protection in the event of disputes. Without such mechanisms, investors remain cautious due to Venezuela’s history of nationalisations and contract instability.
Broader structural and fiscal reforms are needed to make investment conditions more competitive. Although Venezuela holds vast oil reserves and has attracted renewed interest following political changes and eased US sanctions, companies like Chevron are reluctant to commit significant funds without clearer, more reliable rules.
Overall, his message is that legal reform is a step forward, but not yet enough to unlock substantial international investment.
