- Agreements enabled by the recent relaxation of U.S. sanctions on Venezuelan oil and gas sector
- General License 44 (“GL 44”) issued by OFAC on 18 October 2023 broadly allows the resumption of all oil and gas activities in Venezuela
- These authorisations contained in GL 44 apply equally to U.S. and non-U.S. persons
- Agreements in place will allow the redevelopment of the asset
- Focus includes reinvestment in preserving asset integrity, maintaining personnel safety and well-being, and production growth
- Increased involvement of M&P in the mixed company operations and procurement, including the appointment of additional secondees in key positions
- Agreements include arrangement to pay off debt of M&P Iberoamerica (80% subsidiary of M&P)
- Outstanding debt owed to M&P Iberoamerica ($914 million) will be recovered over time via the allocation of a set portion of the revenue of the mixed company
- Some of this debt may be used to increase the exploitation area of the mixed company in Lake Maracaibo
- The Urdaneta Oeste field has considerable upside potential
- Permit valid until 2041, with 422 million of barrels (gross) approved for development as of year-end 2022
- Current gross production potential of c.16,500 bopd, with a view to bring back production to 25,000 bopd by year-end 2024, ramping-up further thereafter
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