TotalEnergies signed a memorandum of understanding with the Venezuelan state-owned company PDVSA on September 19. The agreement aims to establish strategic cooperation in the hydrocarbon sector, marking the French company's return to the country after a five-year absence.
The company previously exited upstream operations in Venezuela in 2021, which resulted in a $1.4 billion writedown. The current deal follows political changes in the country in January 2026 and recent reforms to the Organic Hydrocarbons Law that allow for expanded roles for foreign firms.
Renewed interest from TotalEnergies began earlier, with trading discussions held in April 2026. Other international energy majors, including BP, Eni, Repsol, and Chevron, have also secured similar agreements with the new government this year.
Venezuela holds approximately 303 billion barrels of proven oil reserves. Current production remains below 1 million barrels per day, compared to 3 million barrels per day in the late 1990s. The specific financial and operational terms of the new memorandum are not yet public.
