19/03/2026 by Jay Hatton
Energy titans Shell and Chevron are reportedly nearing completion on new oil production deals in Venezuela. The news follows both companies securing preliminary agreements with the South American nation’s authorities.
Sources state that the US’s Chevron is currently in talks to grow production levels at its joint venture with PDVSA, called “Petropiar”. Its expansion aim involves tapping a deposit alongside its current operation.
Chevron seeks to negotiate for lower royalty rates on the second deposit and access further incentives now available due to the new oil law in Venezuela.
Should the agreement go ahead, the supermajor would hold the position of the largest private heavy crude producer in the country’s Orinoco Belt.
UK oil and gas giant Shell is also in talks with Venezuelan authorities to develop fields in the east, situated in the area called Monagas North. The location is one of the few places in Venezuela where light and medium crude can be found.
A spokesperson for the company said that Shell’s plans extend beyond oil and include developing Venezuelan natural gas resources, both onshore and offshore.
Under Venezuela’s new oil law, private businesses assume full management of oil and gas activities at their own expense, risk and account, demonstrating both technical and financial capacity via a business plan that is subject to the Venezuelan oil ministry’s approval. However, the ownership of the resources they develop will remain with the state.
As well as conducting exploration activities, both Shell and Chevron operate leading lubricant brands (Shell Lubricants and Texaco) that supply full portfolios of cutting-edge products ranging from compressor oil to cleaning and degreasing solutions.
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