Chevron, Eni Sign Multibillion-Dollar Deals to Boost Venezuelan Oil Output
A major expansion of oil projects in Venezuela has been announced by Chevron and Italy's Eni, following a ceremony overseen by interim President Delcy Rodriguez and US Energy Secretary Chris Wright.
The deals signed on Wednesday include a $7 billion project valued by Chevron to develop two additional oil fields in the Orinoco Belt. The output from this project is expected to more than double in five years.
Chevron, which is the US's second-largest oil company and the top private oil producer in Venezuela, will ramp up its operations in the country as part of the deal. Eni has also gained exclusive rights to explore the giant Junin 5 oilfield.
The agreements are separate from a recent Caracas-Washington agreement that gives the US access to 17 Venezuelan oilfields, representing about a fifth of the country's total reserves. The new contracts relate to project expansions that have been under negotiation with Venezuela's Oil Ministry and state oil company PDVSA since an oil reform was approved in January.