Large energy companies are speeding up energy projects far from the Middle East as uncertainty related to the war in Iran lingers, according to a new report.
The Wall Street Journal detailed that Exxon Mobil and Chevron are among these companies.
The former outlined a plan to invest up to $24 billion in Nigerian deep-water oil fields, while the latter is expanding operations in Venezuela, especially after the U.S.'s capture of former authoritarian President Nicolas Maduro in January and the decision by his successor, Delcy Rodriguez, to open up the country's economy.
BP also bought stakes in projects off the coast of Namibia and TotalEnergies signed an exploration deal with Turkey, the outlet added.
Elsewhere in the report, the WSJ noted that a silver lining from supply crunches resulting from the war is a cash windfall from prices surging allowing them to finance new ventures.
At the same time, oil companies operating in the Middle East have taken hits. Exxon saw a 6% decrease in its global oil-and-gas production in the first quarter and set to lose some $5 billion in revenue this year after taking damage to a natural gas facility in Qatar.
Venezuela could largely benefit from the scenario, as two major energy companies have reached a deal with Venezuela's interim government to revive production in a large offshore field and begin exporting natural gas.
Bloomberg detailed that Spain's Repsol and Italy's Eni plan to start exporting the resource by the end of 2031. The deal, the outlet added, allows the companies to more than double production in the Gulf of Venezuela and export liquefied natural gas from a floating terminal.
The deal is the latest sign that Venezuela is being brought back into the global economy. Last week, the International Monetary Fund (IMF) and the World Bank announced they resumed engagement with the country, a development that could pave the way for the country to receive international funding the first time in several years.
CNBC noted that engagement with the country had stopped in 2019 due to issues related to the recognition of the government as lawful.
Now, the IMF could conduct its first assessment of the country's economy in about 20 years and potentially unlock billions of dollars resulting from frozen special drawing rights. JPMorgan estimated the figure at about $5 billion.
IMF Managing Director Kristalina Georgieva said in a statement that the organization is now dealing with interim President Delcy Rodriguez.
Also last week, the U.S. eased sanctions on the country's state-run financial system, allowing key institutions to resume using U.S. currency and access global markets.
