ONGC, Chevron all set for oil deals with Venezuela
What's the story
Leading global energy companies are on the verge of signing key agreements for projects in Venezuela. The list includes US giants Chevron and GE Vernova, India's Oil and Natural Gas Corporation (ONGC), Italy's Eni, and Colombia's GeoPark. The deals could be inked as early as this week after months of negotiations aimed at reviving the OPEC nation's energy sector.
Contract details
Agreements signal end of transition under revised hydrocarbon law
The upcoming agreements mark the end of a six-month transition of oil contracts under a revised hydrocarbon law.
The amended law provides foreign companies more freedom to expand their operations, including running oilfields and exporting crude oil and cash sale proceeds.
Some of the pacts also define terms for new energy and electricity projects in Venezuela.
Business strategy
Chevron's pacts expected to be 'of significant size'
Chevron's agreements with Venezuela are expected to be "of significant size."
The company is looking to add a block in the massive Orinoco Belt to its portfolio, which would expand one of its joint projects with state-run PDVSA.
Chevron also plans to negotiate an area in Monagas North that could become a major source of diluents for its extra-heavy oil production.
Project updates
GeoPark, Eni also in talks for energy projects
GeoPark has advanced in talks for the Bare heavy oilfield, also in the Orinoco. This could give the company access to up to one billion barrels of reserves.
Meanwhile, Eni is working with its Venezuelan counterparts and other authorities to "support the revitalisation of the country's energy sector."
The Italian firm shares the Perla offshore gas project with Repsol and has a partnership with PDVSA for Corocoro oilfield.
Investment assurance
US to secure stake in Venezuela's oilfields
US President Donald Trump had said that US energy majors Exxon Mobil and Chevron were among companies committed to investing in Venezuela.
The upcoming agreements are separate from a massive Caracas-Washington pact announced last week for the US to secure a stake in 17 oilfields with some 64 billion barrels of proved reserves.
These fields are expected to produce up to 1.5 million barrels per day (bpd) of crude, more than doubling Venezuela's current output of 1.25 million bpd.