Venezuela Energy Deals Near Finalization

Months of negotiations between international energy companies and Venezuela's government are nearing a decisive moment. Several major firms, including Chevron and GE Vernova from the US, India's ONGC, Italy's Eni, and Colombia's GeoPark, are poised to sign final agreements on energy projects in the country.

The new contracts will provide for the completion of a six-month transition of oil contracts to the updated hydrocarbons law. This law gives foreign companies greater opportunities to expand and operate fields, export oil, and manage proceeds from its sale.

Chevron is particularly interested in expanding its presence in Venezuela's energy sector. The company plans to add a block in the Orinoco Basin to its portfolio, which would allow it to expand one of its joint projects with state-owned PDVSA. Chevron is also negotiating over a site in Monagas state that could become an important source of diluents needed to produce extra-heavy crude oil.

GeoPark has made progress in negotiations over the Bare heavy oil field in the Orinoco Basin. If an agreement is reached, the company could gain access to reserves of up to 1 billion barrels of oil.