New agreements have been signed to increase oil production in Venezuela, while U.S. company Chevron announced plans to expand its investments in the country. Venezuela’s state-owned oil company PDVSA reached agreements with Chevron and Italian energy company Eni.
Interim President Delcy Rodriguez attended the signing ceremony at the Miraflores Presidential Palace in the capital Caracas, alongside U.S. Energy Secretary Chris Wright.
Chevron partnership agreements renewed
The Venezuelan government and Chevron renewed agreements concerning Petroboscan, Petropiar and Petroindependencia, which are operated jointly with PDVSA. The arrangements are intended to bring the agreements into compliance with the new hydrocarbons law that entered into force in January.
The two sides also signed a comprehensive payment agreement concerning the bonus to be paid in exchange for the concession to access hydrocarbon reserves in the fields allocated to Petroindependencia.
Production agreement for Junin 5 block with Eni
PDVSA and Eni signed a production-sharing agreement to operate the Junin 5 block in the Orinoco Oil Belt, home to some of the world’s richest crude oil deposits. The parties also agreed on a field access protocol.
PDVSA also reached a production partnership agreement with Primavera for the Budare-Elotes field in the eastern part of the country.
Energy infrastructure partnership with GE Vernova
U.S.-based GE Vernova established a strategic partnership with PDVSA to renew the electrical infrastructure of oil facilities.
As part of its decision to expand its operations in Venezuela, Chevron aims to raise its investments in the country to $7 billion over the next five years and increase its production capacity to more than twice its current level.
Energy dialogue with Washington
U.S. Energy Secretary Chris Wright described the energy agreements signed between the Venezuelan government and U.S. companies such as Chevron and GE Vernova as a historic moment for Venezuela’s transformation and the expansion of opportunities for its people.
Wright said U.S. President Donald Trump aims to bring peace, freedom, new opportunities and prosperity to Venezuela. He said energy was a key element in Venezuela’s transformation and the prosperity of U.S. citizens, adding that past conflicts should give way to trade.
Delcy Rodriguez highlighted the energy agreements between Caracas and Washington. Rodriguez said the memorandum signed on August 28 provides for the extraction of 65 billion barrels of reserves in the fields and expressed hope that this would also have a positive impact on the U.S. people.
Thanking the Trump administration, Rodriguez said the Venezuelan government was working toward a goal based on mutual benefit that would produce gains for both sides.
