As the newspaper describes, investors are setting up funds en masse and targeting unused oil fields in this Latin American country.
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After decades of corruption and mismanagement Venezuelan oil production has fallen from a historic peak of 3.5 million barrels per day in the 1970s to approximately 1.2 million today. Now the situation is changing dramatically.
The first such step on the American stock exchange
Among the entities that made the fastest move is Lionheart Capital, an investment fund from Miami founded by Ophir Sternberg. The company has signed a letter of intent regarding the merger of its listed company Lionheart Holdings with Keo Energy, a group that owns oil assets in the Maracaibo basin.
This merger is intended to create the first company listed on Nasdaq, which will provide investors with direct access to Venezuelan deposits. The planned valuation of the company is approximately USD 1 billion.
Keo Energy (dependent on Swedish Maha Capital) owns 40%. shares in PetroUrdaneta. Although the local fields produced hundreds of thousands of barrels a day in the 1950s, lack of investment pushed production below 2,000. barrels per day. However, new measures may increase this indicator to 54,000. barrels of oil equivalent per day by 2029
New law and an American appeal
Additionally Venezuela has adopted a new hydrocarbons law that drastically weakens state giant PDVSA and allows private companies to directly manage drilling. American investors are thus responding to Trump's January appeal to invest $100 billion. in the reconstruction of Venezuelan industry.
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In April, the country was visited by Bryan Sheffield, co-founder of the Formentera Partners fund, who previously participated in the summit at the White House. He met there with interim president Delcy Rodríguez. “We talked about the oil and gas business and what it could mean for Venezuela, and it could be a game changer,” Sheffield said.
In turn, Ali Moshiri, former head of Chevron for Latin America, is trying to raise $2 billion. under its Amos Global Energy Management fund. The geopolitical situation also makes choosing a direction easier. As one fund manager in Caracas notes: “It's unbelievable: the Middle East is burning and Venezuela is stable.”
Investments outside the oil sector
Fever isn't just about energy. Yorkville Advisors, a fund linked to the Trump family, created a SPAC company, planning to raise $200 million. to buy a business in Venezuela.
In turn, the media conglomerate Grupo Cisneros has already secured two-thirds of the planned USD 1 billion. for the Intrépida fund, which will invest in agribusiness, communication and real estate.
