Fossil Energy – Venezuela
Chevron and Shell are advancing discussions with Venezuelan authorities on new oil production agreements that could significantly expand their operations in the country’s energy sector.
The potential deals follow recent reforms to Venezuela’s hydrocarbons law, approved by the National Assembly earlier this year, which grant foreign companies greater operational autonomy to develop, export, and market Venezuelan crude in partnership with state-owned oil company PDVSA.
Chevron is expected to expand its Petropiar project in the Orinoco Belt through access to the Ayacucho 8 block, a large area with proven extra-heavy oil resources. The project could allow Chevron and PDVSA to extend existing well-cluster production systems, enabling a relatively rapid increase in output.
If finalized, the expansion would represent Chevron’s fifth operational area in Venezuela and could position the company as the largest private producer in the Orinoco Belt, which holds more than three-quarters of the country’s crude reserves.
In parallel, Shell is reportedly progressing discussions to advance oil and gas developments in the Monagas North region, targeting the Carito and Pirital fields.
The potential agreements are part of broader efforts to attract international investment and restore Venezuela’s oil production capacity after decades of underinvestment.
