Chevron and Shell Target Key Production Zones
Global energy majors are moving swiftly to capitalize on Venezuela's reopening. Chevron is nearing an agreement to expand its Petropiar project and develop the Ayacucho 8 block, both located in the Orinoco Belt, a region holding over 75% of the nation's vast crude reserves. This expansion would allow Chevron to become the largest private producer in the prolific heavy-oil region.
Simultaneously, Shell is advancing deals for a different mix of assets. The company is targeting the Carito and Pirital fields in the Monagas North region, which produce valuable light and medium crude as well as natural gas. These lighter grades are crucial for blending with Venezuela's heavy oil to make it exportable. Shell's strategy also includes capturing flared gas for potential export, aligning with its global focus on natural gas.
US Policy Unlocks 303 Billion Barrels of Reserves
The surge in corporate activity is a direct result of a significant US policy shift. President Trump's declaration that large companies are entering the market to "rapidly increase oil production" signals official backing for rebuilding the sector. This political support is underpinned by regulatory changes from the U.S. Treasury's Office of Foreign Assets Control (OFAC), which has issued general licenses authorizing investment and operations.
The opportunity is immense, as Venezuela sits on 303 billion barrels of proven oil reserves. However, production has collapsed from a peak of over 3.2 million barrels per day in the late 1990s to recent levels below 900,000 bpd. To attract the necessary capital, Venezuela’s legislature has reformed its hydrocarbons law, granting foreign partners greater operational control over production and sales. The potential returns are attracting even companies with a history of conflict, as ConocoPhillips is reportedly negotiating a return despite holding $12 billion in claims against the state from previous nationalizations.
Edgen Stock·Mar 16 2026, 16:36
