Above-Ground Risks Limit Huge Potential

BMI View: Venezuela's long-term oil and gas potential is undeniable, with the country's proven reserves now estimated to be larger than those of Saudi Arabia. Nevertheless, the short-to-medium term outlook for the sector is dependent on the government's ability to mitigate many above-ground risks, including the country's poor economic situation. This remains particularly true in the run-up to the October 2012 presidential elections and amid ongoing uncertainty surrounding President Hugo Chávez's health.

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