Venezuela Oil Reforms Draw New Investment from Eni, Chevron and GeoPark
- Venezuela's energy sector is moving from regulatory reform toward implementation, as a reworked hydrocarbons framework begins to attract international operators. In January 2026, the country reformed its Organic Hydrocarbons Law, introducing new contractual mechanisms for primary hydrocarbon activities, including Production Participation Contracts (PPCs), under which private companies can assume operational and financial responsibility for projects.
- Eni and GeoPark signed long-term contracts under the new framework in September. Eni agreed a 25-year Hydrocarbon PPC with PDVSA to develop the giant JunÃn 5 field in the Orinoco Belt as exclusive operator, with responsibility for its technical, financial and commercial management. GeoPark entered the country through a 25-year PPC for the Bare Block, an agreement valued at approximately US$1.20Bn covering more than 15.7 billion barrels of oil originally in place and more than 1,100 existing wells.
- Chevron is also expanding its position in the country. On September 2, 2026, the company announced updated terms for its Venezuelan joint ventures, including additional acreage in the Orinoco Belt and plans to invest more than US$7.00Bn over five years, which it expects to more than double production from its Venezuelan operations to approximately 600,000 barrels per day from 2026 levels.
- The African Energy Chamber (AEC) has also engaged with Venezuelan institutions on investment promotion, technical knowledge transfer and cooperation across the energy value chain.
- Further capital will be needed to unlock the country's resource base. Venezuela holds more than 300 billion barrels of proven oil reserves and more than 195 trillion cubic feet of natural gas. Rehabilitating the sector will require substantial investment in production, infrastructure and refining.
(Source: World Oil)