TotalEnergies signed a new energy cooperation agreement with Venezuela's state-run oil company, PDVSA. TotalEnergies' senior vice president for the Americas and the president of PDVSA finalized the deal in Caracas. The agreement facilitates the French major's potential return to the Venezuelan energy sector.
Venezuela's new government intends for the deal to attract foreign investment into its energy industry. Specific project details and financial commitments were not immediately disclosed. The move follows TotalEnergies' earlier exit from the country's oil and gas sector.
The company previously indicated it was nearing trading contracts with PDVSA. This deal follows a sweeping oil arrangement between the U.S. and Venezuela. The U.S. arrangement aims to increase production and channel crude through U.S. infrastructure. No market reaction was available.