KEY POINTS
- Chevron and Shell are close to signing major oil production deals in Venezuela, marking their first large agreements since the U.S.‑backed political shift in January 2026.
- Chevron is focusing on expanding heavy oil output in the Orinoco Belt, while Shell is targeting both oil and natural gas fields for future growth.
- Contract reviews and sanction compliance checks are underway, underlining the continuing influence of U.S. policy and regulatory scrutiny on foreign investment in Venezuela’s energy sector.
International energy giants Chevron and Royal Dutch Shell are on the verge of finalizing their first large‑scale oil production agreements in Venezuela since a significant political transition in January 2026 that saw U.S. influence grow over the country’s government and oil exports.
These developments mark a pivotal moment in efforts to revive Venezuela’s long‑troubled oil industry after years of crisis and sanctions.
The forthcoming deals are part of a broader U.S. strategy led by the Trump administration to attract foreign oil capital and rebuild Venezuela’s energy infrastructure, putting an estimated $100 billion of investment potential on the table.
Chevron is reportedly nearing agreement on terms to expand production at its existing Petropiar project in the Orinoco Belt, Venezuela’s most oil‑rich region and secure rights to a new drilling area known as Ayacucho 8.
This expansion would boost Chevron’s ability to extract extra‑heavy crude and strengthen its position as one of the dominant private producers in the country.
Chevron’s move underscores a strategic shift: after decades of sanctions and contraction, the company is positioning itself as a central player in Venezuela’s recovery, leveraging its existing operational footprint and local experience.
Shell’s Broader Portfolio and Gas Prospects
British energy major Shell has also moved forward with preliminary agreements to develop oil and natural gas fields in eastern Venezuela, particularly the Carito and Pirital blocks in Monagas North. These areas are seen as important sources of lighter crude and natural gas, the latter critical for boosting future domestic fuel processing and export capacity.
Shell’s engagements extend beyond oil, with technical and commercial partnerships with engineering and services firms aimed at strengthening infrastructure and local expertise.
The Venezuelan government is conducting a comprehensive review of all oil and gas contracts, expected to conclude by the end of March 2026, and may revoke contracts that failed to meet performance or investment targets.
Simultaneously, U.S. authorities are vetting foreign partners to ensure compliance with sanctions conditions before approving expanded operations in Venezuela, illustrating how geopolitics continues to shape commercial decisions in the energy sector.
