Venezuela and the US are examining dozens of confidential oil contracts signed during Nicolas Maduro's regime, according to people familiar with the situation. These productive participation contracts allowed investors to pump and trade crude while keeping their identities secret to avoid US sanctions. The agreements helped fund the socialist government by circumventing restrictions on oil sales by non-state actors.

Under pressure from the Trump administration, Venezuela is auditing firms involved while US officials inspect export paperwork. The inquiries could slow recovery of Venezuela's oil sector, especially if other companies become reluctant to sign new drilling contracts. Former PDVSA executive Juan Fernández noted that while concerns exist about how contracts were awarded, the country needs the current oil production.

Venezuela's oil sector faces a critical juncture as the country balances US pressure with its need for investment. The contracts cover prolific areas like Lake Maracaibo and the Orinoco Belt, where eight companies were producing 210,000 barrels per day by mid-February. With geopolitical tensions rising and US midterm elections approaching, the strategic value of Venezuelan heavy crude for Gulf Coast refineries has increased significantly, making these investigations particularly consequential for global energy markets.