Chevron, Shell Seal Big Oil Deals with Venezuela Amid US-Led Rebuild Effort

International oil majors Chevron and Shell are nearing significant production deals in Venezuela after decades of mismanagement and underinvestment, according to sources close to the negotiations.

The US government has said it aims to spend $100 billion to rebuild Venezuela's oil industry. The country's National Assembly approved a sweeping reform of its main oil law in late January, granting foreign companies autonomy to operate, export, and sell Venezuelan oil even as minority partners with state-owned PDVSA.

Chevron is finalizing agreements to expand its largest project, Petropiar, in the Orinoco Belt. The deal would give Chevron access to the Ayacucho 8 area, a large block with proven oil resources that has remained largely undeveloped for two decades.

Shell signed preliminary oil and gas agreements with Venezuela last week, focusing on the Carito and Pirital fields in the Monagas North region. These areas produce light and medium crude and natural gas, prized by companies due to their export potential.