ConocoPhillips CEO Ryan Lance said Venezuela's recent oil law modifications are inadequate to attract foreign investment, citing government revenue terms that could reach 95%.
The hydrocarbon law changes allow royalties up to 30%, taxes up to 15%, and additional levies. Lance stated, "The current hydrocarbon law is not sufficient to attract a lot of investment. A 95% government take will not do it."
Venezuela's state oil company PDVSA recently proposed a contract favoring the government on arbitration, taxes, and termination, according to sources.
Lance noted the terms resemble those before ConocoPhillips had $12 billion in holdings nationalized in 2007. "It looks a lot like what we had before we got expropriated in 2007. It doesn't look like it's anywhere near what it needs to be."
The contract is part of President Trump's effort to revive Venezuelan oil production. Oil industry executives have asked the administration to address the issue with Venezuela's interim government.
