Venezuela’s Dilapidated Refineries Face Daunting Revival Challenges

By the Editorial Team · Wednesday, July 29, 2026

Venezuela's Paraguana Refining Center, including the Amuay and Cardon refineries, is operating far below capacity due to years of neglect, equipment failures, and damage from recent earthquakes. With an estimated $20 billion needed for full restoration and limited foreign investment interest, the government faces major challenges in reviving the crucial fuel supply infrastructure.

Venezuela’s once-prominent Paraguana Refining Center in Falcon state, which has a combined capacity of 955,000 barrels per day, now operates well below its potential after years of decline. The complex, which includes the 645,000-barrel-per-day Amuay refinery and the Cardon refinery, has suffered from prolonged underinvestment, equipment failures, and inadequate maintenance, severely impairing its ability to supply fuel to the Venezuelan population.

In recent months, inspections of the Paraguana facilities and another active refinery revealed widespread deterioration. Open-air waste pits are nearly at capacity, and residual materials leak across pipelines and valve stations, contributing to unsafe and inefficient conditions. Workers and experts describe the infrastructure as “rusty” and decaying, highlighting the urgent need for repairs and investment.

The challenges of reviving Venezuela’s refining sector have been compounded by the aftermath of disastrous earthquakes that struck the country last month, killing over 5,000 people and causing extensive damage nationwide. Energy analyst Oswaldo Felizzola noted that the government’s immediate priorities have shifted toward recovery efforts, delaying substantial investment in refinery restoration until at least 2027.

Estimates from Felizzola and other industry experts place the cost of fully restoring refining capacity at approximately $20 billion. Despite President Donald Trump’s pledge of $100 billion in foreign oil company investments, experts say that foreign participation in refinery rehabilitation remains unlikely in the near term. U.S. and international oil firms are hesitant to invest in Venezuela’s refineries, partly because U.S. refineries are capable of processing Venezuela’s heavy sour crude oil, reducing the incentive to rehabilitate local facilities.

This leaves interim President Delcy Rodriguez’s administration with limited prospects for attracting the necessary capital from abroad or domestic sources to revive the country’s refining infrastructure. The refineries remain critical to Venezuela’s energy security, but their deteriorated state presents a significant obstacle to meeting domestic fuel demand and supporting economic recovery.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.