Venezuela Oil Surge: US Investors Pursue Trump’s $100 Billion Energy Asset Opportunity – Report
US investment groups are rapidly moving to capitalize on the reopening of Venezuela’s oil sector. Following a call from US President Donald Trump in January for $100 billion in investments to rebuild the country’s energy industry, firms are targeting underinvested oilfields and launching new investment vehicles. Miami-based Lionheart Capital is among the early entrants, having signed a letter of intent to merge its publicly listed affiliate, Lionheart Holdings, with Keo Energy, which holds oil assets in Venezuela’s Maracaibo Basin.
Lionheart’s merger with Keo Energy aims to create the first Nasdaq-listed company that provides US and institutional investors direct access to Venezuelan oil assets. The planned listing is valued at approximately $1 billion through a merger with Lionheart Holdings, which raised $230 million in a public offering earlier this year. Preliminary talks are ongoing, but no final agreement has been reached, and discussions could still collapse. Lionheart Holdings is also seeking shareholder approval next week to extend the timeline for completing the acquisition.
Keo Energy, a subsidiary of Sweden’s Maha Capital, owns a 40% stake in PetroUrdaneta, a Venezuelan oil company controlling onshore oilfields in the Maracaibo Basin. These assets, which produced hundreds of thousands of barrels daily in the 1950s, now yield fewer than 2,000 barrels per day due to decades of underinvestment. Venezuela’s state-owned PDVSA retains the remaining 60% stake. An investor presentation indicated that with new investment, PetroUrdaneta’s production could rise to 54,000 barrels of oil equivalent per day by 2029.
Washington lifted sanctions allowing US firms to invest in Venezuela’s oil sector after a military operation in January that led to the removal of Nicolás Maduro. Subsequently, Venezuelan authorities approved a new hydrocarbons law that reduces PDVSA’s role and permits private companies to operate wells directly. Major energy groups, including Repsol, Eni, and Shell, have signed agreements as the sector reopens. Local executives are actively seeking new deals across the country.
Bryan Sheffield, co-founder of Austin-based Formentera Partners, attended a White House summit in January focused on Venezuela. He visited the country in April and met with interim president Delcy RodrÃguez to discuss the potential of the oil and gas sector. Sheffield noted that Formentera has not yet made a final investment decision but has sent a team to explore opportunities. Meanwhile, Ali Moshiri, former head of Chevron’s Latin American operations, is looking to raise $2 billion through his Amos Global Energy Management fund, having identified multiple Venezuelan oil assets for investment.
The renewed interest in Venezuela’s oil industry has energized the sector. An oil executive in Maracaibo reported a surge in inquiries, stating, “My phone hasn’t stopped ringing… Banks want to lend and people want to make deals.” A Caracas-based fund manager indicated that geopolitical tensions in the Middle East have further fueled investor interest, remarking, “It’s unbelievable: the Middle East is on fire and Venezuela is stable.”
Investment interest is also extending beyond oil. Yorkville Advisors, a financial group linked to Trump’s family, launched a SPAC last month aiming to raise $200 million for acquiring a Venezuelan business. Additionally, Miami-based Grupo Cisneros announced in April that it had secured two-thirds of a planned $1 billion investment fund, known as Intrépida, targeting sectors such as agribusiness, communications, and real estate. Grupo Cisneros CEO Adriana Cisneros expressed surprise at the ease of raising capital, noting a diverse mix of American and Latin American family offices, institutional investors, and sovereign wealth funds.
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