Foreign companies pay a high price for upstream acreage

The Venezuelan government has allowed the entry of foreign investors into the country's oil industry in order to increase its production capabilities and to take advantage of the international market for oil. Petroleos de Venezuela (PDV) plans to release $44 billion for both joint ventures and local investments. PDV had successfully bidded out 10 exploration contracts by including a profit-sharing scheme for the investors.
Venezuela's recent licensing round has brought foreign investors into the country's oil sector for the first time in 20 years. The shift in policy is part of a $60bn plan [...]