Venezuela may privatize oil sector

Sources told Bloomberg that the president's government Nicolás Maduro, Venezuela, proposed to deliver actions and control of his oil industry to large multinational companies. This is all due to the economic collapse and the strong sanctions facing the country, however, the proposal is still at an early stage and has many obstacles ahead.

Government representatives would be having conversations with companies such as Rosneft PJSC, Russia, Repsol, Spain, and ENi SpA, Italy. The goal would be for them to occupy oil facilities and restructure some debts of the state-owned Petróleos de Venezuela SA (PDVSA) in exchange for assets of the company.

PDVSA, which was once a very prestigious and capable oil company to produce 3.5 million barrels per day, now only manages to produce 700,000. In addition, the Venezuelan central bank's foreign exchange reserves are at the lowest in 30 years, while government-in-kind reserves add up less of $1 billion.

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