ConocoPhillips in-situ site, image via https://www.conocophillips.com/
FORT McMURRAY — ConocoPhillips, a major oil sands producer with deep experience in heavy oil development, is signalling caution on any return to drilling in Venezuela, despite renewed global interest in the country’s vast reserves.
The Houston-based company is a long-standing player in Alberta’s oil sands and recently expanded its footprint through the acquisition of the Surmont in-situ project from Total Energy. Executives say that focus on politically stable jurisdictions stands in contrast to Venezuela, where the company remains reluctant to deploy new capital.
ConocoPhillips chief executive Ryan Lance addressed the issue directly during the company’s latest earnings call, pushing back against expectations of a rapid Venezuelan production ramp.
“We’re pretty focused on what we’ve talked about in the past, and that’s the pathway to get some recovery on Citgo in Venezuela,” Lance said, referring to the U.S.-based refiner owned by Venezuela’s state oil company. “That’s our first priority right now.”
The company is owed at least $10 billion, including interest, following a 2019 international arbitration ruling tied to the nationalization of foreign oil assets under former president Hugo Chávez. Venezuela’s oil output once peaked near 3.75 million barrels per day but has fallen to about 800,000 barrels per day in 2025 after years of sanctions, underinvestment and infrastructure deterioration.
Lance said any renewed involvement would depend on meaningful improvements in security, stronger relationships with local governments and communities, and durable policy frameworks in both Venezuela and the United States. He added that assurances from Washington have so far fallen short, despite calls for as much as $100 billion in investment to revive Venezuela’s oil sector.
The stance differs from that of rivals such as Chevron, which retained minority interests in Venezuela after nationalization and expects to boost production by up to 50 per cent as U.S. restrictions ease. Chevron chief executive Michael Wirth said in January the company sees potential for near-term growth.
For ConocoPhillips, however, Venezuela remains a longer-term uncertainty. Lance said the company’s priority is capital discipline and operating in regions where legal certainty and regulatory stability more closely resemble conditions in places such as Alberta’s oil sands.
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