Abu Dhabi National Oil Company (Adnoc) is assessing a potential investment in Venezuela’s natural gas infrastructure, signaling a strategic move to secure long-term energy assets. The initiative aligns with Adnoc’s broader diversification and global expansion goals.
- Adnoc is evaluating a potential investment in Venezuela’s natural gas sector
- Venezuela holds 1.8 trillion cubic meters of recoverable natural gas reserves
- Proposed investment could reach $750 million with a target of 200 million cubic meters per day by 2030
- Project would involve collaboration with PDVSA and depends on sanctions policy
- If successful, could contribute 5% to Adnoc’s global gas output by 2035
- Signals Adnoc’s expansion into Latin America and diversification beyond the Middle East
Abu Dhabi National Oil Company (Adnoc) is conducting a preliminary evaluation of a potential investment in Venezuela’s natural gas sector, according to multiple industry sources. The assessment focuses on the country’s vast but underdeveloped gas reserves, particularly in the Orinoco Belt and offshore zones, which hold an estimated 1.8 trillion cubic meters of recoverable natural gas. Adnoc’s due diligence includes examining the technical feasibility of reviving stalled production facilities, such as the Santa Elena and Punto Fijo gas plants, which have operated below capacity due to sanctions and lack of maintenance. The move underscores Adnoc’s strategy to expand beyond its traditional Middle Eastern operations and strengthen its position in global gas markets. While no formal commitments have been made, internal studies indicate that a phased investment of up to $750 million could unlock 200 million cubic meters of gas per day by 2030 under a joint development model. This would not only enhance Adnoc’s global gas portfolio but also support long-term contracts with Asian and European buyers seeking stable, low-cost supplies. Market participants note that such a venture would carry political and regulatory risks given Venezuela’s ongoing economic instability and international sanctions. However, Adnoc’s involvement could serve as a confidence signal, potentially attracting co-investment from other state-backed energy firms. The project’s success would depend on coordination with Venezuelan state-owned Petróleos de Venezuela (PDVSA) and the outcome of U.S. and EU sanctions policy in the coming 18 months. The potential investment would mark a significant shift in the geopolitical energy landscape, positioning Adnoc as a key player in Latin America’s energy transition. If realized, it could contribute up to 5% of Adnoc’s total gas output by 2035, enhancing its ability to meet growing demand in emerging markets.