Venezuela’s crude production has climbed to an average of 1.1 million barrels per day in March, up from 942,000 barrels per day recorded in February, according to figures presented by Petróleos de Venezuela, S.A. (PDVSA) and cited by Reuters.
The rebound follows major political and regulatory changes that have reshaped the country’s oil sector after the removal of former president Nicolás Maduro and subsequent easing of U.S. sanctions. The shift has opened the door for renewed foreign participation and fresh investment into Venezuela’s struggling petroleum industry.
Although production is rising, the country remains far from its historic peak. In the 1990s, Venezuela produced close to 3 million barrels per day. Years of underinvestment, operational challenges, and sanctions had pushed output to some of its lowest levels in decades.
A key driver of the recent recovery is a new hydrocarbons law passed earlier this year. The legislation limits royalty rates to a maximum of 30% while giving authorities the flexibility to adjust rates per project based on investment requirements and competitiveness. Venezuela’s interim president, Delcy Rodríguez, has said the reform could attract up to $1.4 billion in oil investments within the year.
Under the new framework, private oil companies are allowed to fully manage operations at their own cost and risk once they demonstrate sufficient technical and financial capacity through approved business plans. However, ownership of hydrocarbon resources remains with the Venezuelan state.
The policy shift has already drawn interest from major international energy firms. Chevron is reportedly discussing plans to expand its Petropiar joint venture with PDVSA.
Meanwhile, Shell is exploring opportunities to develop oil fields in eastern Venezuela, particularly in the Monagas North area, known for its lighter crude reserves. Shell is also assessing potential natural gas projects both offshore and onshore.
Industry observers say the combination of regulatory clarity, foreign technical expertise, and capital inflow could gradually restore Venezuela’s role as a significant oil producer in global markets, though rebuilding the sector to former levels will take time.
