Canadian independent New Stratus Energy is advancing discussions on five oil opportunities in Venezuela while preparing to finalize a joint venture agreement in Colombia, according to BNamericas.
It was reported that the company is in active negotiations on five Venezuelan oil projects and expects to sign a joint venture agreement for a Colombian asset in the near term. While none of the Venezuelan transactions has been completed, the company said negotiations are progressing as it pursues growth opportunities across northern South America.
According to BNamericas, the proposed Venezuela portfolio would add to a growing list of upstream opportunities being evaluated by smaller international companies as interest gradually returns to the country’s oil sector. Venezuela holds the world’s largest proven crude oil reserves, although years of underinvestment, ageing infrastructure and political uncertainty continue to weigh on development.
BNamericas said New Stratus is pursuing a strategy focused on acquiring and developing oil and gas assets across Latin America. The company sees both Colombia and Venezuela as offering long-term resource potential despite the technical, financial and regulatory challenges associated with operating in those markets.
The Colombian joint venture is expected to provide New Stratus with a producing or near producing asset while discussions continue on the Venezuelan opportunities. Company executives described the two countries as complementary parts of its regional expansion strategy.
BNamericas also reported that no timeline has been announced for completing the Venezuelan transactions. The proposed deals remain subject to commercial negotiations and regulatory approvals, and the company has not disclosed which oil fields are involved or the financial terms under discussion.
The developments reflect continued interest among smaller exploration and production companies in pursuing opportunities in frontier and higher risk jurisdictions where sizeable hydrocarbon resources remain available.