Energy Giants Close in on Final Deals in Venezuela

A group of major energy companies is on track to finalize agreements in Venezuela after months of negotiations. The list of companies includes U.S.-based Chevron and GE Vernova, India's ONGC, Italy's Eni, and Colombia's GeoPark. These agreements will give more flexibility to foreign firms to expand and operate oilfields, export barrels, and cash sale proceeds.

Chevron is reportedly trying to add a block in the vast Orinoco Belt to its portfolio, which would allow one of its joint projects with state-run PDVSA to expand. The company also aims to negotiate an area in Monagas North that could become a key source of diluents for its extra-heavy oil output.

GeoPark has made progress in negotiations for the Bare heavy oilfield in the Orinoco, which could give the company access to up to 1 billion barrels of reserves. Eni is working with its Venezuelan counterparties and other authorities to support the revitalization of the country's energy sector.

The agreements are separate from a massive Caracas-Washington pact announced last week for the U.S. to lock in a stake in 17 oilfields with some 64 billion barrels of proved reserves. These fields, located in the Orinoco Belt and Lake Maracaibo, are expected to produce up to 1.5 million barrels per day (bpd) of crude in the long term.

U.S. Vice President JD Vance said there has already been a significant increase in oil production out of Venezuela, citing the 65 billion-barrel reserve as a major contributor to stable oil prices.