The African Energy Chamber throws its weight behind Delcy RodrÃguez amid political turmoil
CARACAS – The African Energy Chamber, an industry body, has voiced support for Delcy RodrÃguez, Venezuela’s acting president, as the country navigates its latest political crisis. The intervention comes after the detention of Venezuela’s president by the United States and Ms RodrÃguez’s subsequent elevation by the supreme court—developments that have cast fresh doubt over the future of the world’s largest oil reserves.
NJ Ayuk, the chamber’s executive chairman, called on African states and the broader Global South to rally behind Ms RodrÃguez, who also serves as oil minister. “This is the time to continue encouraging everyone to invest in Venezuela,” he said, framing stability as essential to unlocking the country’s energy potential. The chamber has cultivated ties with Ms RodrÃguez, who has championed Africa’s right to develop its hydrocarbon resources and overseen partnerships between Venezuela’s state oil company, PDVSA, and African nations.
Yet geopolitical backing may prove insufficient without domestic reform. Venezuela sits atop 303 billion barrels of proven oil reserves, 17% of the global total, but production remains a fraction of historical levels. Output has recovered to roughly 900,000 to 1.1 million barrels per day (bpd) from a low of 300,000 bpd in 2020, but this is still far short of the 3.4 million bpd peak reached in the late 1990s. Returning to those levels would require cumulative investment of $80 billion to $100 billion, a daunting figure for a country whose infrastructure is crumbling.
The energy sector accounts for nearly 90% of export revenues and over half of government income, making it the clearest path to economic recovery. The Orinoco Heavy Oil Belt, a 55,000-square-kilometre expanse containing nearly 90% of Venezuela’s reserves, holds extraordinary potential. But the extra-heavy crude found there requires diluents, upgrading facilities and modern extraction technology—all of which demand sustained capital and predictable governance.
Venezuela’s refining system, with nameplate capacity of 1.46 million bpd, operates at just 10-20% due to deferred maintenance. Pipelines dating back more than half a century need billions in upgrades. PDVSA estimates that restoring functionality across the value chain will cost roughly $58 billion. These are not merely technical challenges; they represent employment opportunities that could rapidly improve domestic conditions if addressed.
International oil companies have maintained a cautious presence. Chevron produces around 240,000 to 250,000 bpd through joint ventures. European firms including Eni, Repsol and Shell, along with service providers such as SLB, Baker Hughes and Halliburton, have focused on asset integrity under constrained conditions. Expanding these relationships will require transparent, mutually beneficial contractual frameworks—a tall order given Venezuela’s history of expropriation and arbitrary rule changes.
Offshore natural gas fields offer diversification opportunities. The Dragon field, estimated to hold more than 4 trillion cubic feet of gas, and the Cocuina-Manakin development near Trinidad could support regional LNG markets and power generation. But monetizing these resources faces the same fundamental obstacle: without credible institutions and regulatory clarity, even the world’s largest reserves cannot attract the capital needed for recovery.
The African Energy Chamber’s endorsement reflects Venezuela’s longstanding ties with the Global South. As a founding member of OPEC, Venezuela championed the inclusion of African countries in the organization. As an honorary member of the African Petroleum Producers’ Organization, it has supported capacity-building programs for African students and companies. These relationships have positioned Venezuela as an advocate for resource-rich developing nations.
Yet advocacy cannot substitute for governance. Venezuela’s energy sector has been hollowed out by corruption, underinvestment and the exodus of skilled workers. Restoring production to 2.5 million bpd over the next decade—a modest target given historical output—would require annual investment of around $10 billion. Attracting that capital will depend on contract stability and a demonstrated commitment to the rule of law.
The lesson from other resource-rich nations is clear: natural wealth alone does not guarantee prosperity. For Venezuela, the challenge is not geological but institutional. Without predictable governance, even 303 billion barrels cannot deliver recovery.
