CERAWEEK: Latin America Takes Oil Spotlight Despite Troubles

The company has expanded within the region with exploration and production blocks in Peru, Colombia and Argentina. It is now actively tendering crudes and products on the open market.

Paolo Scaroni, the CEO of Eni, said on Wednesday that a crucial offshore gas project in Venezuela with Repsol and state-run PDVSA will start early production at the end of this year, while the company increases crude output at another billion-dollar development in the Orinoco belt, the country's largest reservoir.

But companies venturing into the region are now looking at Mexico, where the market is set to open 75 years after a nationalization. That could provide experienced firms and mid-sized ones a chance to build on their success in U.S. shale and offshore plays.

Money Locker

"Can I have my money back?" That is a frequent question among companies based outside Latin America after price and currency controls surged in recent years, and there is no easy answer.

Argentina and Venezuela have imposed long-term restrictions to deal with hard currency shortages, but both are also trying to relax them in a period of economic weakness.

Frequent legal changes and the imposition of windfall profit taxes in Venezuela, Colombia and Ecuador since crude prices climbed in 2008 have also contributed to investors' wariness.

With a lone bid at the minimum price, a consortium of Brazil's state-run Petrobras, Shell, France's Total , CNOOC and China National Petroleum Corporation in October won the rights to develop the offshore Libra field. The weak result was blamed on onerous local content requirements in a country with high taxes.