Maha Capital asks for US approval to purchase stake in Venezuelan oil company
Paulo Thiago Mendonca is the chairman of Maha Capital's board. He said that the United States has approved the acquisition of an indirect minority stake in a PDVSA controlled oil company. The firm has until the end of May to "exercise" an option to acquire a majority stake. Novonor is a subsidiary that owns 40% PetroUrdaneta - a small oil company in Venezuela with underdeveloped oilfields.
Maha's deal, if finalized, would be one of the first foreign firms to enter the Venezuelan oil sector after U.S. president Donald Trump encouraged investments in the wake of the capture of Venezuelan president Nicolas Maduro at the beginning of January.
Mendonca stated that "we are closely following the directions of the United States in order to determine how we can move forward."
PDVSA is the Venezuelan state oil company that controls these onshore fields. PDVSA has a 60% share in PetroUrdaneta. Mendonca said that he believes oil firms have "gigantic opportunities" in Venezuela. He cited recent remarks by Interim President Delcy Rodriguez who stated she would reform the country’s hydrocarbon laws to create conditions for new investment.
Mendonca said that small and medium-sized businesses will be first in line to join the program because of their speed and appetite for risk.
Mendonca stated that Maha Capital had experience in the oil industry. He cited?the oil investments the company made in the U.S.A. and Oman. Maha Capital also owned shares in Brazil's Brava Energia, but sold them to focus on fintech investment.
The Swedish company controlled by Brazilian fund manager,?Starboard, now plans to spend an undisclosed sum to develop PetroUrdaneta’s fields in the Maracaibo Basin in Venezuela’s northwestern Zulia state.
According to a 'Maha' presentation, PetroUrdaneta produced 250,000 barrels per day in the 1950s. But decades of low investments slowed production to 1,500 bpd.
Mendonca stated that Maha's investment could increase PetroUrdaneta’s production to 40,000 barrels equivalents per day, as reservoirs still hold around 400,000,000 barrels worth of recoverable oil.
Mendonca stated, "It is a huge field and there's still much to be extracted."
(source: Reuters)