Chevron, Shell Said to be Close to Cutting Venezuela Oil Deals

International oil majors Chevron and Shell are nearing major production deals with Venezuela, the first since the United States removed President Nicolás Maduro from power in January, five sources familiar with the negotiations told Reuters reporters Marianna Parraga and Daisy Buitrago.

Chevron and Venezuelan energy authorities have already agreed on preliminary terms to expand Chevron’s largest oil project, Petropiar. (Photo: Chevron Facebook)

The agreements would allow both companies to expand production in key oil regions in the South American nation.

The deals represent the most significant step yet toward what US President Donald Trump has described as a $100 billion effort to rebuild Venezuela’s oil industry, which has suffered decades of mismanagement and underinvestment under Maduro and his predecessor Hugo Chávez.

Venezuela’s National Assembly approved sweeping reforms to the country’s main oil law in late January.

The changes grant foreign companies greater autonomy to operate, export and sell Venezuelan oil even as minority partners of the state-owned oil firm PDVSA.

Chevron and Venezuelan energy authorities have already agreed on preliminary terms to expand Chevron’s largest oil project, Petropiar, located in the vast Orinoco Belt, two sources said.