Chevron, Eni, and Others Near Final Energy Deals in Venezuela, Sources Say

A cohort of international energy firms, including U.S.-based Chevron and GE Vernova, are reportedly on the verge of signing final agreements to expand energy projects in Venezuela. The deals follow months of negotiations aimed at solidifying operations in the OPEC nation, according to five sources close to the preparations.

New Agreements Under Amended Law

The pacts represent the culmination of a process to migrate existing oil contracts to an amended hydrocarbon law in Venezuela. This new legal framework is designed to give foreign companies greater operational and financial flexibility, the sources said.

Key provisions reportedly allow foreign partners to:

• Directly manage the expansion and operation of oilfields.
• Handle the export of crude oil and control the cash proceeds from sales.

While the final list of signatories is still being negotiated, companies including India’s ONGC, Italy’s Eni, and Colombia’s GeoPark are expected to finalize terms alongside their U.S. counterparts.

Company-Specific Negotiations

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Chevron's agreements are anticipated to be of "significant size," one source noted. The U.S. major is reportedly seeking to add a block in the vast Orinoco Belt to expand a joint project with state-run PDVSA and is also negotiating for an area in Monagas North to secure diluents for its extra-heavy oil output.

Separately, Colombia’s GeoPark has advanced negotiations for the Bare heavy oilfield, potentially gaining access to reserves of up to 1 billion barrels. In a statement, Eni said it was working with its Venezuelan counterparties to "support the revitalization of the country’s energy sector."

Context for Venezuela's Oil Sector

These individual company agreements are distinct from a broader pact announced between Caracas and Washington for the U.S. to secure a stake in 17 oilfields. Those fields hold an estimated 64 billion barrels of proved reserves and are projected to eventually add up to 1.5 million barrels per day (bpd) of production.

Such an increase would more than double Venezuela’s current output, which authorities state is 1.25 million bpd. U.S. officials have recently highlighted the role of rising Venezuelan production in contributing to the stability of global oil prices.