Chevron, Shell Close In on Major Venezuelan Oil Deals Amid US-Led Rebuild Efforts
US oil majors Chevron and Shell are nearing significant production deals in Venezuela after President Nicolas Maduro was captured by US authorities in January. This marks a major shift towards revitalizing Venezuela's oil industry, which has been plagued by decades of mismanagement and underinvestment.
The new legislation grants foreign companies autonomy to operate, export, and sell Venezuelan oil even as minority partners with state-owned PDVSA. Chevron is closing in on a deal to expand its largest oil project, Petropiar, in the Orinoco Belt. The US major aims to secure reduced royalty rates and tax incentives for developing greenfield areas.
Shell has also signed preliminary agreements with Venezuela last week, focusing on the Carito and Pirital fields in the Monagas North region. This area is prized for its ability to produce light and medium crude and natural gas.