Chevron, ONGC Close In on Major Venezuela Energy Deals

Venezuela is on the cusp of finalizing major energy deals with Chevron and ONGC, two of the world's leading oil producers. According to Reuters, the agreements will bring significant foreign investment into the country's oilfields and power infrastructure.

The new contracts will give companies more operational flexibility over fields previously dominated by PDVSA, Venezuela's state-owned oil company. This includes the ability to export their own crude and receive the proceeds directly, a major departure from the state-controlled model that governed the industry for decades.

Chevron is seeking an additional block in the Orinoco Belt, which would allow one of its joint ventures with PDVSA to expand. The U.S. major also wants to invest in an area in northern Monagas that could supply diluents needed for Venezuela's extra-heavy crude.

ONGC is preparing to invest about $200 million in the San Cristobal field, where the Indian state producer is targeting a tenfold increase in production.