Oil talent starts returning to Venezuela as the country reopens its energy sector

Venezuela's reopening to international oil investment is beginning to draw experienced executives back to the country, adding to signs that its energy revival is moving beyond contracts and sanctions relief toward rebuilding the industry's human and operational capacity.

Gustavo Baquero, managing director of Harbour Energy Mexico, said Aug. 26 he will leave the company in November to dedicate himself "100% to the reconstruction of Venezuela's energy sector."

"Time to rebuild where it started — Venezuela!" said Baquero, a veteran of ExxonMobil, Repsol, BP and Equinor, in a LinkedIn post.

"Rebuilding an energy sector is not a slogan and it is not a solo act," Baquero said, pointing to the need for "operational and technical rigor, capital discipline, institutional trust" and experienced Venezuelan talent.

Baquero did not disclose his next position, but called to connect with operators, investors, service companies, multilaterals and Venezuelan talent at home and abroad.

His departure comes as Venezuela seeks to revive an oil and gas sector that suffered years of underinvestment, sanctions and declining production. Recent legal reforms and easing restrictions have encouraged renewed interest from international operators, service companies and investors seeking access to some of the world's largest hydrocarbon resources.

Internal S&P Global analysis has highlighted increasing company interest, new transactions and expectations for production growth as activity gradually returns to the sector.

International companies are already positioning themselves for a larger role in the country. BP recently appointed veteran Venezuelan executive Luisa Cipollitti as country manager for Venezuela as it advances offshore gas opportunities. Aspect Holdings named Andrés Sarmiento Grisales as Venezuela country manager effective Aug. 15, while Fluxus Oil & Gas appointed Bruno Picozzi to the same position as it seeks to expand its presence in the country.

The trend extends beyond corporate leadership. Oilfield service companies including SLB, Halliburton, Baker Hughes and Weatherford have been expanding hiring efforts as operators prepare for increased activity. Industry participants are working to rebuild technical and operational capabilities after years of workforce losses.

Venezuela's upstream sector is beginning to show signs of renewed momentum as the government implements a new hydrocarbons framework designed to attract investment and increase production, including migrating existing contracts to a more flexible fiscal regime and negotiating lower government takes to encourage investment.

Companies including Chevron, Repsol, Hunt Oil and New Stratus Energy are pursuing new opportunities or expanding existing operations, while SLB has signed an agreement to carry out a nationwide reservoir characterization program.

Chevron has increased production to about 280,000 b/d and is targeting a further 50% increase by late 2028, while Repsol has outlined plans to raise output by 50% before next April.

The country reported crude production of about 1.19 million b/d in June, up 7.1% year over year, with PDVSA targeting 1.37 million b/d by year-end.