KEY POINTS
- Eni gets exclusive control of Junín 5 for 25 years.
- The field holds 35 billion barrels of certified oil in place.
- The deal replaces the previous Petrojunín joint-venture model.
Italian energy company Eni and Venezuela’s state-owned oil giant PDVSA have signed a 25-year hydrocarbons participation contract covering the development of the giant Junín 5 heavy oil field in Venezuela’s Orinoco Belt.
The agreement gives Eni exclusive operatorship of the onshore field and marks a major change in how the project will be managed. Under the new arrangement, Eni will take full responsibility for the field’s technical, financial and commercial operations.
The contract can also be extended beyond its initial 25-year term, potentially giving Eni a long-term role in the development of one of Venezuela’s most significant oil assets.
The deal was signed in the presence of Venezuelan Acting President Delcy Rodríguez, during US Energy Secretary Chris Wright’s visit to Venezuela. Also present were Venezuelan Minister of Hydrocarbons Paula Henao, PDVSA Chief Executive Héctor Obregón and Eni CEO Claudio Descalzi.
Junín 5 is a major heavy oil asset located in the Orinoco Belt, one of the world’s largest hydrocarbon-producing regions.
The field has approximately 35 billion barrels of certified oil in place, highlighting its enormous long-term production potential. Despite its vast resources, current output is relatively modest at about 12,000 barrels per day.
Eni’s new operating mandate is therefore expected to focus on restoring and expanding production from the field, although the company did not disclose a specific production target or investment figure as part of the announcement.
The agreement represents an important step in Venezuela’s efforts to revive its oil industry after years of declining production, operational difficulties and restrictions that have limited investment in the sector.
The agreement also brings an end to the previous operating structure for Petrojunín.
Under the earlier arrangement, Eni held a 40% interest while PDVSA owned the remaining 60%. The project is now transitioning to a new contractual framework introduced under Venezuela’s Organic Hydrocarbons Law, which was approved by the country’s National Assembly in January 2026.
The new hydrocarbons participation contract gives Eni exclusive operatorship rather than simply maintaining its previous minority position in the joint venture.
The transition follows a Head of Terms agreement signed by Eni and PDVSA on April 28, 2026, which laid the groundwork for restructuring the project and restarting production.
