Brazilian billionaire Joesley Batista, through his family's energy firm Fluxus, has officially secured a 49% stake in Petrolera Roraima, a joint venture with Venezuela's state oil company PDVSA. This project, which was formerly operated by ConocoPhillips, represents a significant entry point for Fluxus into Venezuela's oil-rich but sanction-hit energy sector. The Batista family, who also control the world's largest meatpacker JBS, had been discreetly exploring opportunities in Venezuela, with their associate Jorge Silva Cardona's A&B Investments already holding a stake in the project since 2024, enabling initial production increases.
Batista's move follows a period of shuttle diplomacy, including meetings with U.S. officials in Washington and Venezuela's interim President Delcy Rodriguez in Caracas. These discussions aimed to reassure U.S. officials about Venezuela's commitment to upholding American interests and to explore opportunities in the nation's energy sector. Rodriguez, reportedly, expressed willingness to open Venezuela's oil and gas industry to foreign investment, signaling a potential shift in the country's approach to international partnerships.
The Petrolera Roraima project, which once boasted a capacity to produce around 90,000 barrels a day of upgraded crude, saw its daily output reach 32,000 barrels between June and October under A&B Investments' management before a decline due to U.S. sanctions. The Batistas' broader strategy includes Cautiously exploring further investments in Venezuela's mining sector and electrical infrastructure, contingent on establishing institutional stability and legal certainty in the post-Maduro era. Their holding company, J&F SA, while denying current assets in Venezuela, has indicated readiness to evaluate investments once the business outlook clears.
The deal comes amidst a complex geopolitical landscape, with the Batistas navigating U.S. sanctions and seeking to capitalize on a potential revival of Venezuela's oil industry. Fluxus has also been consolidating assets in Bolivia and Argentina since 2023, expanding its regional energy footprint. The involvement of a major Brazilian player like Fluxus could be a bellwether for increased foreign investment in Venezuela's energy sector, particularly as U.S. sanctions on the country's oil industry are subject to ongoing review and potential easing.
