Despite the instability in the Middle East, the biggest risk for the oil industry is Venezuela, the CEO of BP told CNBC Monday.
"I think most people would say the Gulf region, I actually say Venezuela," Bob Dudley, CEO of BP told CNBC at the Abu Dhabi Petroleum Exhibition & Conference, when asked about geopolitics and the oil sector.
"I think Venezuela is just defying economic gravity and I think that's a real wild card," he added.
Venezuela, an OPEC nation and one of the biggest oil producers in the world, is starting a debt renegotiation with foreign investors on Monday. However, it is not clear that President Nicolas Maduro will succeed in these talks, increasing the risk of debt default.
According to Reuters, Maduro said Sunday that "default will never reach Venezuela" and the country has "a clear strategy" — to renegotiate and refinance the foreign debt.
Venezuela aims to restructure about $60 billion in bonds. Caracas has struggled to refinance its debt because U.S. banks cannot buy new Venezuelan bonds due to sanctions imposed by U.S.