Pacific Coast Energy Negotiates $800 Million Venezuelan Oil Deal

California-based Pacific Coast Energy is negotiating to operate oil fields in Venezuela, raising $800 million through debt, equity, and trade finance to fund the venture. The move comes as the government of acting President Delcy Rodríguez attempts to attract U.S. investment to revive a dilapidated oil industry following the ouster of Nicolás Maduro.

The deal faces legal challenges from the Cisneros family, operating through DP Delta Finance. The family alleges the Venezuelan government illegally nullified their rights to the same assets within the PetroDelta joint venture, resulting in $2 billion in losses. Their legal representative characterized the seizure as an abrupt, arbitrary, and unusual procedure.

While the Trump administration supports U.S. leadership in the recovery of the Venezuelan oil sector, officials stated they were not involved in the Pacific Coast Energy transaction. In a separate development, Hunt Oil has signed a production-sharing agreement to pump oil from two fields in eastern Venezuela. Oil Minister Paula Henao stated that new regulatory changes provide legal certainty for investors.