Chevron, Shell closing in on major oil production deals in Venezuela

The United States’ capture of Venezuelan President Nicolás Maduro in January has paved the way for major international oil companies to pursue new production ventures in the country. According to sources close to negotiations, Chevron and Shell are closing in on their first major oil production deals in Venezuela since that political shift.

The potential agreements would mark the largest advance yet in what U.S. President Donald Trump has described as a roughly $100 billion effort to revive Venezuela’s long‑struggling oil sector after years of underinvestment and mismanagement under Maduro and his predecessor Hugo Chávez.

In late January, Venezuela’s National Assembly approved sweeping reforms to the country’s main oil law. The new legislation gives foreign companies greater autonomy to operate, export and sell Venezuelan oil even when they are minority shareholders alongside the state‑owned PDVSA.

Chevron and Venezuelan energy authorities have reportedly agreed on preliminary terms to expand Chevron’s largest oil project, Petropiar project, in the vast Orinoco Belt. This would include rights to produce from the Ayacucho 8 area, a large block with proven extra‑heavy oil resources that has been largely undeveloped.

Chevron aims to secure reduced royalty rates and other tax and trade incentives under Venezuela’s new legislation, potentially boosting its oil output and exports. If finalized, this would be Chevron’s fifth oil area in Venezuela and could make it the largest private producer in the resource‑rich Orinoco region.

Shell has signed preliminary oil and gas agreements with the Venezuelan government and local partners, including Vepica, KBR and Baker Hughes. These agreements aim to develop fields such as Carito and Pirital in the Monagas North region — areas capable of producing light and medium crude as well as natural gas.

Shell’s strategy targets not only oil but also natural gas opportunities, leveraging existing infrastructure to reduce gas flaring and expand exports — potentially via neighboring markets like Trinidad.