ConocoPhillips Faces Huge Obstacles in Returning to Venezuela

ConocoPhillips, one of the world’s largest energy companies, is facing major challenges as it considers reentering Venezuela’s oil industry — a country with vast oil reserves but a complex political and legal history. This decision involves not only billions in unresolved financial claims but also memories of personal danger for company leaders and deep uncertainty about the future of Venezuelan oil production.

Background: Once a Major Investor in Venezuela

In the late 1990s and early 2000s, Conoco (before merging with Phillips Petroleum to become ConocoPhillips) was among the first Western companies to sign large oil-production deals in Venezuela. The company helped develop projects in the Orinoco Belt — a massive region of heavy crude oil — with the state-owned petroleum company PDVSA.

These ventures were intended to last for decades and produce a steady stream of oil profits. ConocoPhillips employed hundreds directly and supported thousands more indirectly through contracts and local jobs.

Historic Kidnapping Shakes Company Leaders

One particularly dramatic episode from Conoco’s time in Venezuela occurred in early 2002. Roger Ramshaw, then the head of Conoco’s Venezuela operations, and his wife were kidnapped at gunpoint shortly after arriving in their car in Caracas. A masked gunman forced Ramshaw to take him to his own apartment so he could steal cash and valuables. Ramshaw’s wife was taken to a separate car with a cloth covering her head.

The ordeal ended only after Ramshaw complied with the thieves’ demands, gathering valuables from his own home in exchange for his wife’s safety. Though such “express kidnappings” were common in Venezuela at the time, the episode profoundly affected the company’s perception of the country’s risks.

Nationalization and a Loss of $10 Billion Worth of Oil Assets

Relations between ConocoPhillips and the Venezuelan government deteriorated over the years. In 2007, then-President Hugo Chávez pushed a nationalization policy that required foreign oil firms to accept less favorable terms for their projects. ConocoPhillips refused these changes and chose to exit Venezuela rather than accept reduced control and compensation.

The abrupt exit cost the company roughly $10 billion in oil assets and production capacity — a huge financial blow. Jubilant Venezuelan workers even celebrated the government takeover of Conoco’s operations at the time.

The $12 Billion Arbitration Battle

After leaving Venezuela, ConocoPhillips pursued legal action through international arbitration, winning awards that now total about $12 billion. However, Venezuela and PDVSA have consistently defaulted on these payments. So far, ConocoPhillips has collected only a small portion of the amount — less than $1 billion — through creative efforts such as seizing and selling barrels of Venezuelan oil stored in Caribbean facilities.

In addition, the company is positioned to receive about $1.4 billion from the forced sale of Citgo, a U.S. refiner owned by PDVSA.

The Trump Push and ConocoPhillips’ Reluctance

Recently, U.S. political developments have added pressure and complexity to ConocoPhillips’ decision. U.S. President Donald Trump has encouraged major oil and gas companies to invest in Venezuela again, framing it as an opportunity to revive the country’s oil industry and secure energy resources. But ConocoPhillips is cautious.

Company executives note that ConocoPhillips already has strong, profitable opportunities in safer regions — such as U.S. shale and projects in Qatar — which may offer better returns without Venezuela’s political risks. This makes the company less eager to return unless there are clear assurances it can recover what it’s owed and protect future investments.

At a White House meeting, CEO Ryan Lance said the company is focused on recovery of funds and monitoring developments, but he did not express strong enthusiasm for new Venezuelan ventures. Meanwhile, Trump declined to promise help in recouping past losses, emphasizing that the United States would not look back at what was lost long ago.

Political and Economic Considerations

Venezuela still holds some of the world’s largest oil reserves. If political stability improves and legal clarity emerges about foreign investment protections, companies might see renewed opportunity. But deep concerns remain — both for ConocoPhillips and other firms — about whether these assets will be secure amid ongoing geopolitical shifts.

ConocoPhillips has stated it continues to follow developments closely and considers global energy supplies and long-term stability in its planning. However, its main interest appears to be resolving outstanding claims rather than committing large new investments in a country with such a troubled history.

Conclusion: A Difficult Road Ahead

For ConocoPhillips, returning to Venezuela is not just about the lure of oil riches — it’s about decades of legal battles, dangerous past experiences, and weighing financial risk against geopolitical uncertainty. While the company keeps its options open, the combination of a multi-billion-dollar claims fight and memories of turbulent times in the country will hang over any possible return.

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