Eni, Chevron sign major upstream oil field development deals with PDVSA

Italy's Eni signed a "strategic" contract with Venezuela's state-owned PDVSA for operatorship of what it termed the "super-giant" Junin 5 oil field in the onshore heavy oil Orinoco Basin on Sept. 2, while Chevron said it would double its crude production in the country to 600,000 b/d by 2031, the latest in a string of Venezuelan upstream deals in recent days.

Eni and PDVSA signed the "Contrato de Participacion Productiva de Hidrocarburos" (CPPH) to revive oil production by transitioning from the current operating model of the Petrojunin joint venture (Eni 40%, PDVSA 60%) to the new contractual regime, it said in a release.

Under the 25-year-old CPPH – with the possibility of extension – Eni will have full responsibility for the technical, financial, and commercial management of the project, the release said, adding Junin 5 is a heavy oil field containing 35 billion barrels of certified oil in place, with a current output of about 12,000 barrels/day.

"This agreement represents a new pillar for the revival of the country's [Venezuela's] oil and gas sector, at a historic time when energy security, based on abundant resources and diversified supply routes, is vital to global stability," Eni CEO Claudio Descalzi said in a statement.

"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, which we have never abandoned, continuing to provide energy to the local population even during the most difficult times," Descalzi said.

In Venezuela, Eni is also engaged in developing natural gas projects, in particular, through the Cardon IV company that is jointly owned by Eni (50%) and Repsol (50%), the release said, noting Eni also operates the Perla field within the Cardon IV license, the largest offshore gas field discovered in Latin America.

Eni also holds a stake in the PetroSucre JV (PDVSA 74%, Eni 26%), which operates the offshore Corocoro oil field, as well as a stake in Supermetanol, a petrochemical company engaged in methanol production, it said.

At present, the company holds six mining licenses located in the Gulf of Venezuela and the Gulf of Paria and the Orinoco Basin, it said.

In 2025, Eni's equity hydrocarbon production in Venezuela was 64,000 b/d of oil equivalent, mainly from the Perla gas field, which accounts for nearly 35% of the country's total gas consumption, the release said.

Chevron sees oil output rising to 600,000 b/d

Separately, Chevron Corp. plans to spend $7 billion to double its crude oil production in Venezuela to nearly 600,000 b/d by 2031, the US major said Sept. 2, unveiling updates to its existing joint ventures that will boost future investments, asset development, and output growth in the Latin American country.

"As part of the agreements, Chevron has been assigned additional acreage in the Orinoco Belt, where the company has an established position," it said in a statement, noting that the company's total production costs are estimated at less than $20/barrel given its large resource base in Venezuela.

The agreements also set out updated provisions for Chevron's JVs in Venezuela, including enhanced fiscal, commercial, and legal terms intended to support durable and competitive long-term investments, the statement said, without providing details.

Chevron had no additional comments at this stage, spokesperson Laura Hurst said in an email response to Platts queries Sept. 2.

Platts is part of S&P Global Energy.

Under the agreements, the Petroindependencia joint venture, in which Chevron's subsidiary holds a 49% interest, has been assigned the rights to develop the adjacent Carabobo-1 and Carabobo-2-South-A areas, the statement said, adding that the greenfield sites expand the JV's existing operational footprint in the Orinoco Belt, where it is increasing extra-heavy oil production.

The additional sites further strengthen Chevron's growing portfolio in Venezuela, following an April agreement in which the company increased its working interest in Petroindependencia to 49% and received the rights to develop the Ayacucho 8 area adjacent to the Petropiar joint venture. Collectively, Chevron's three joint ventures have grown production by 15% year-to-date.

"Chevron's history in Venezuela spans more than a century, and our expanded position reflects our confidence in the country's deep resource potential and its ability to compete for investment within our portfolio for decades," CEO Mike Wirth said in a statement.

"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," Wirth said.

Aspect Holding deal

Separately, the Venezuelan state-owned oil company PDVSA signed a new agreement with the US-based Aspect Holding at a ceremony in Caracas on Sept. 2.

The main objective of this license is to study the economic feasibility and potential of new oil fields in key areas such as the Orinoco Oil Belt and the Gulf of Venezuela. However, details of the agreement were not made available.

"We contribute experience, technology, and capital to develop multiple fields in the coming years," said Alex Cranberg, CEO of Aspect Holding, on a broadcast by Venezolana de Television (VTV).

Several Venezuelan deals have been announced in recent days.

North American Blue Energy Partners said Sept. 1 it plans to invest nearly $100 billion to expand its Venezuelan operations and lift oil production above 1 million b/d, under an agreement with the US government that gives Washington rights to a 35% stake in the company and preferential access to its crude.

KEO Capital AB, through its US subsidiary Maha Indiana (or KEO Energy), signed an agreement with PDVSA for the management of the PetroUrdaneta joint venture, located in Zulia state, the company said Aug. 28.

US Energy Secretary Chris Wright said Sept. 2 he was confident that North American Blue Energy Partners could give US companies the legal certainty they need to invest in Venezuela.

Venezuelan oil production has risen to 1.2 million b/d in August, and the bulk of oil exports have increasingly been heading to the US.

The increased flow of Venezuelan heavy crude has put downward pressure on prices for other heavy crudes in the region. For instance, Ecuadorian Napo crude averaged at a $14.36/b discount to WTI in August, down from a $4.94/b discount in April, Platts data shows.

Platts is part of S&P Global Energy.