Venezuela Inks Major Energy Deals with Chevron and Eni

Venezuela's government has signed major energy investment agreements with US oil company Chevron and Italian energy major Eni, in a move aimed at expanding Venezuela's oil production and attracting foreign investment. The agreements were signed during a visit to Caracas by US Energy Secretary Chris Wright, and come after Washington announced a historic energy agreement with Caracas last week.

Under the terms of the agreements, Chevron will invest more than $7 billion over the next five years across its Venezuelan joint ventures with state oil company Petroleos de Venezuela (PDVSA). The investment is expected to raise output to approximately 600,000 barrels per day. Chevron was also granted additional acreage in the resource-rich Orinoco Belt adjacent to its existing operations.

Eni has finalized a 25-year strategic contract under which it will become the exclusive operator of the Junin 5 heavy oil field in the Orinoco Belt. The company aims to increase production at the field to 400,000 barrels per day by the end of the decade, with estimated annual investment of $1.5 billion.