Oil Majors Cautious on Investing in Venezuela

ConocoPhillips and Shell highlight need for security, policy stability, and attractive returns before committing capital

Feb. 5, 2026 at 3:15pm

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Two of the world's largest oil companies, ConocoPhillips and Shell, have expressed cautious views on the prospects for renewed investment in Venezuela following the recent political changes. Both companies emphasized the need for improved security, durable policies, and attractive risk-adjusted returns before they would consider significant new investments in the country's dilapidated oil industry.

Why it matters

Venezuela's oil industry has been in decline for years due to mismanagement, underinvestment, and political instability under the Maduro administration. The new government is seeking to attract major international oil companies to help revive the sector, but the industry leaders are taking a measured approach, wary of the risks and uncertainties that remain.

The details

ConocoPhillips CEO Ryan Lance said the company's priority in Venezuela is to recover the $12 billion it is owed in compensation for the expropriation of its assets in 2007, rather than to increase investment. Shell CEO Wael Sawan indicated that any new investment in Venezuela would depend on the overall risk-adjusted return profile and the company's ability to operate safely and effectively. Both executives highlighted the need for improved security and durable policies as prerequisites for substantial new commitments.

  • In early January 2026, the Maduro administration was overthrown in Venezuela.
  • On Thursday, ConocoPhillips and Shell executives made their comments about investing in Venezuela.

The players

ConocoPhillips

A major American oil and gas company headquartered in Houston, Texas.

Shell

A multinational oil and gas company headquartered in London, United Kingdom.

Ryan Lance

The CEO of ConocoPhillips.

Wael Sawan

The CEO of Shell.

Nicolás Maduro

The former president of Venezuela whose administration was recently overthrown.

Donald Trump

The President of the United States who called on US companies to invest up to $100 billion to revive Venezuela's oil industry.

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What they’re saying

“We need a constructive relationship with local governments and the local people [and] that they actually want US companies there. Security needs to improve … and then you need durability on the policy side.”

— Ryan Lance, CEO, ConocoPhillips (bnamericas.com)

“Our focus remains on trying to get the recovery that is owed us.”

— Ryan Lance, CEO, ConocoPhillips (bnamericas.com)

“Venezuela was one of several new oil geographies where investment would 'depend on the entire risk-adjusted return profile and our ability to be able to say to ourselves, 'Is this where we want to deploy our capital?'”

— Wael Sawan, CEO, Shell (bnamericas.com)

What’s next

The new Venezuelan government will need to demonstrate improved security conditions, durable policy reforms, and an attractive investment climate in order to entice major oil companies like ConocoPhillips and Shell to significantly increase their commitments in the country.

The takeaway

The cautious approach of these oil majors highlights the significant challenges Venezuela faces in reviving its critical oil industry, even with a change in political leadership. Restoring investor confidence will require sustained efforts to address long-standing issues of security, policy stability, and economic viability.