Eni Takes Control of Venezuelan Oil Field, Eyes 240k bpd Production

Italy's Eni has secured a major victory in Venezuela after signing a 25-year contract to operate the giant Junín-5 oil field. The deal makes Eni the exclusive operator of the field, which contains an estimated 35 billion barrels of certified oil in place but currently produces just 12,000 barrels per day.

The agreement replaces a previous joint-venture structure between Eni and PDVSA, where the Italian energy major held 40% and Venezuela's state oil company 60%. The new deal gives Eni full control over the technical, financial, and commercial management of Junín-5, with responsibility for investing in the field's development.

Eni has ambitious plans to ramp up production at Junín-5, targeting 240,000 barrels per day. The company will invest around $1.5 billion annually, according to reports from the Financial Times. Chevron is also investing in Venezuela's oil industry, with plans to spend $7 billion over five years and increase production to 600,000 bpd by 2031.