US investors form venture to pursue Venezuela oil, gas projects

Two American investment funds say they will be working jointly with Caracas-based group but any effort is subject to approvals by US and under-sanctions Venezuela.

Any effort is subject to approvals by the United States and Venezuela, the companies say.
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Any effort is subject to approvals by the United States and Venezuela, the companies say.

Two US investment funds have formed a joint venture with a Venezuelan firm to pursue oil and gas exploration and production projects in the US-sanctioned South American country.

Gramercy Funds Management and Atmos Global Energy said on Tuesday their joint venture would work with an arm of Inelectra Group, a Caracas-based firm that holds a stake in the Gulf of Paria East oil project off Venezuela’s eastern coast, where it found oil in 2001.

US companies are barred from doing business with Venezuelan state-run oil firm PDVSA, a policy begun in 2018 by the Trump administration and continued under US President Joe Biden.

The companies did not disclose the size of their investment in the oil venture. 

Spokespersons did not immediately reply to requests for comment.

Any effort is subject to approvals by the United States and Venezuela, the companies said.

'Balancing oil supply and demand'

Ali Moshiri, a US executive and former chief of Chevron Corp's Latin American operations set up an investment fund in 2019 to pursue energy projects in Venezuela.

The partners aim to "contribute to balancing oil supply and demand," he said in a statement.

The oil effort "will be beneficial to US interests in the region and the US economy by lowering fuel prices for American consumers," said Matt Maloney, a partner at Connecticut-based emerging market investor Gramercy.

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