Chevron, Shell Close In on Historic Oil Deals with Venezuela

International oil majors Chevron and Shell are on the verge of securing significant production deals in Venezuela, marking a major milestone for the country's beleaguered oil industry. The deals would allow both companies to boost output in key regions, including the Orinoco Belt, where Chevron is already operating.

Chevron has agreed with Venezuelan energy authorities on preliminary terms to expand its largest project, Petropiar, which would grant it access to the Ayacucho 8 area. This would enable Chevron to increase production of extra-heavy oil and exports, while also securing reduced royalty rates and other tax incentives.

Meanwhile, Shell is making progress on oil and gas deals with Venezuela, including agreements to develop the Carito and Pirital fields in the Monagas North region. These areas are prized by oil companies for their potential to produce light and medium crude and natural gas, which can be used for blending to facilitate exports of heavy oil.