Chevron, Shell Close in on Major Oil Deals in Venezuela

International oil majors Chevron and Shell are on the verge of securing major production deals in Venezuela, marking significant progress towards rebuilding the country's oil industry. The deals come after the US capture of President Nicolas Maduro in January.

Chevron has agreed to preliminary terms with Venezuela's energy authorities to expand its largest project, Petropiar, in the Orinoco Belt. This would grant Chevron rights to produce from the Ayacucho 8 area, a large block with proven oil resources. The deal aims to secure reduced royalty rates and other tax incentives.

Meanwhile, Shell has signed preliminary agreements with Venezuela for oil and gas development in the Monagas North region. The company plans to develop the Carito and Pirital fields, which can produce light and medium crude and natural gas.