Chevron, Shell prepare for large-scale oil deals in Venezuela

US companies Chevron and Shell are close to signing the first major oil deals in Venezuela since the country's political changes in early 2026. According to Reuters, citing five sources close to the negotiations, these agreements will allow the companies to significantly increase production in the strategically important oil regions of the South American state.

The expected agreements will be the most ambitious steps towards the implementation of a plan that former US President Donald Trump called a $ 100 billion project to revive Venezuela's oil industry after decades of underinvestment and ineffective management under Presidents Nicolas Maduro and Hugo Chavez.

In late January, Venezuela's National Assembly approved a major reform of the basic oil law. The law gives foreign companies broad autonomy to extract, export and sell Venezuelan oil, even if they are minority partners in state-owned PDVSA.

Chevron has already agreed to preliminary terms for the expansion of its largest project, Petropiar, in the Orinoco oil belt, according to the sources. The company is expected to obtain production rights in the Ayacucho 8 area south of Petropiar’s main block, which contains large proven reserves of extra-heavy oil. This will allow Chevron to significantly increase its production and exports.

The sources also said that Chevron is looking to take advantage of the reduced royalty rate and other tax and trade incentives provided by the new law to develop new oil areas. PDVSA completed exploration in Ayacucho about two decades ago, but the area has remained largely untapped.

Chevron and PDVSA are expected to extend the “bush well” production system already used at Petropiar to Ayacucho 8, allowing for a relatively rapid ramp-up of production. The project would be Chevron’s fifth oil field in Venezuela and could make the company the largest private producer in the Orinoco Belt, which contains more than three-quarters of the country’s crude oil reserves.