Lionheart Capital has signed a letter of intent to merge its publicly listed affiliate with Keo Energy, which holds oil assets in Venezuela's Maracaibo Basin. The proposed deal would create the first Nasdaq-listed company giving US investors direct access to Venezuelan oilfields, with plans for a $1bn valuation through Lionheart Holdings' blank-cheque vehicle that raised $230mn in 2024.

Venezuela's oil production has collapsed from 3.5mn barrels per day in the 1970s to roughly 1.2mn currently, with PetroUrdaneta's fields producing under 2,000 barrels daily due to decades of underinvestment. The company, 40% owned by Keo Energy subsidiary of Sweden's Maha Capital, could reach 54,000 barrels per day by 2029 with new capital. US sanctions lifted after January's military raid that led to Nicolás Maduro's ouster, while Venezuela's new hydrocarbons law weakens state firm PDVSA and opens operations to private companies.

Major oil companies including Repsol, Eni and Shell have already struck agreements in Venezuela. Former Chevron executive Ali Moshiri's Amos Global Energy Management fund aims to raise $2bn, while Trump-connected Yorkville Advisors launched a Spac targeting $200mn for Venezuelan acquisitions. Media conglomerate Grupo Cisneros secured two-thirds of a $1bn fund for non-energy investments. Local oil executives report unprecedented interest, with one noting 'my phone hasn't stopped ringing' as foreign investors rush to assess opportunities in the reopening sector.

The influx represents early momentum toward Trump's $100bn investment goal to rebuild Venezuela's oil industry, though most initiatives remain preliminary. Investment decisions will likely depend on political stability and the ability to execute production increases from fields that have suffered years of decline.