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Chevron, Eni Ink Venezuela Deals to Expand Oil Production, Investment

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Executives from Chevron (CVE) and Eni (E) joined US Energy Secretary Chris Wright and acting Venezuelan President Delcy Rodriguez to unveil energy deals aimed at boosting oil output, the companies said in separate statements on Wednesday.

Chevron agreed to updated terms for its Venezuelan joint ventures, supporting over $7 billion of investment over five years and higher production. Eni and Venezuela's state oil company, PDVSA, signed a separate 25-year contract for the Junin 5 field, with Eni taking exclusive operatorship of the heavy-oil project.

Chevron's new agreements offer improved fiscal, commercial and legal terms to support long-term investment, project development and higher Venezuelan output, it said.

The company also received additional acreage in the Orinoco Belt, expanding its existing operations and providing further opportunities to grow its Venezuelan oil business.

Chevron's investment plans could more than double production from 2026 levels to about 600,000 barrels per day, while total costs remain below $20 per barrel.

"With improved terms and additional acreage, we are strengthening a portfolio that we believe can deliver attractive low-cost oil growth, support energy supply and create differentiated long-term value," said Mike Wirth, Chevron Chairman and Chief Executive Officer.

Under the deals, the Petroindependencia joint venture, in which Chevron's subsidiary holds a 49% interest, will develop the Carabobo-1 and Carabobo-2-South-A areas in the Orinoco Belt.

The new greenfield areas sit within the Orinoco Belt and will expand Petroindependencia's operating footprint as Chevron increases extra-heavy oil production.

Chevron raised its interest in the Petroindependencia JV to 49% in April and also secured rights to the adjacent Ayacucho 8 area, next to its Petropiar joint venture.

Across its three Venezuelan joint ventures, Chevron has increased production by 15% year-to-date, reinforcing its position in the country's oil sector.

"Continued engagement between government and industry is essential to advancing projects that support energy security, economic growth and continued investment," Wirth said.

Eni's new Contrato de Participacion Productiva de Hidrocarburos, or the Hydrocarbons Production Participation Contract, completes a process that began with the April 28, 2026 Head of Terms and replaces the existing Petrojunin joint venture model.

The previous Petrojunin structure gave Eni a 40% stake and PDVSA 60%, while the new 25-year arrangement gives Eni exclusive operatorship and full technical, financial and commercial responsibility.

Junin 5 holds 35 billion barrels of certified oil in place and currently produces about 12,000 b/d, with Eni now leading development of the heavy oil field.

"The operatorship of an important area such as Junin 5 is recognition of our ability to deliver complex projects quickly and efficiently, and it reinforces our long-standing presence in the country...," said Eni Chief Executive Officer Claudio Descalzi.

Eni operates the Perla offshore gas field through Cardon IV, a 50-50 venture with Repsol, under a new agreement that supports production, domestic supply, and future exports.

Eni owns 26% of PetroSucre alongside PDVSA's 74% stake and also holds an interest in Supermetanol.

Eni holds six mining licenses in Venezuela and produced 64,000 barrels of oil equivalent per day in 2025, mainly from Perla, which supplied about 35% of the country's gas consumption.

"Venezuela can now embark on a path of energy development and economic growth that can bring significant benefits to the local population and to global energy availability," Descalzi said.

GE Vernova (GEV) has partnered with Venezuela's PDVSA and state power company Corpoelec to restore and strengthen the country's electricity and energy infrastructure, according to multiple media reports.

GE Vernova did not immediately reply to' request for comments.

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