Venezuela Set for Major Energy Deals with International Giants

Major international energy companies are on the verge of signing agreements with Venezuela to expand oil production and develop new energy projects.

The deals, which include U.S. oil major Chevron, General Electric's energy business GE Vernova, India's state-run Oil and Natural Gas Corporation (ONGC), Italy's Eni, and Colombia's GeoPark, aim to give foreign firms greater operational flexibility in the OPEC member state.

Most of the proposed deals involve migrating existing oil contracts to Venezuela's amended hydrocarbons law, which grants foreign companies more control over operations and increased opportunities to participate in projects involving one of the world's largest oil reserves.

Chevron is expected to secure agreements that could be 'of significant size,' according to sources familiar with the preparations. The company seeks to add an oil block in Venezuela's Orinoco Belt to its existing portfolio, as well as negotiate an area in Monagas North for diluents needed to process and transport extra-heavy crude oil.

The negotiations come as Venezuela seeks to revive an energy industry that has suffered years of underinvestment, declining production, and international sanctions.