The Daily Journal.— During U.S. Energy Secretary Chris Wright’s visit to Caracas, the Venezuelan government formalized new agreements for the hydrocarbons sector on Wednesday at a meeting with a Washington delegation at Miraflores Palace.
The agreements include expanded participation by U.S.-based Chevron and Italy’s Eni in joint ventures operating in the Orinoco Oil Belt.
Earlier in the day, Chevron announced plans to expand its operations in Venezuela through $7 billion in investments over the next five years, with the goal of more than doubling its production in the country.
Chevron Chairman and CEO Mike Wirth said the new agreements include “significant changes to dispute resolution provisions, guarantees on terms and the economic structure of the contracts.”
In Eni’s case, CEO Claudio Descalzi announced that the Italian oil company will take over operations at the Junín-5 field, located in the Orinoco Oil Belt in southern Venezuela.
Delcy Rodríguez’s administration also signed an agreement with Venezuelan company Primavera to operate two fields in the Orinoco Oil Belt.
During the meeting, the U.S. Energy Secretary said the agreements, which involve “billions of dollars in investment and ultimately many, many jobs,” are “essential to begin bringing peace, opportunity and prosperity to everyone.”
The Venezuelan government also formalized a strategic partnership with GE Vernova aimed at “repairing a large part of Venezuela’s power grid.”
Carlos Mousadi, president of GE Vernova Venezuela, and Juan Fernández, representing the National Electric Corporation (Corpoelec), signed the agreement.
The new agreements come amid a push to attract capital and technology to Venezuela’s energy sector following recent agreements between Caracas and Washington aimed at expanding the participation of international private companies in efforts to restore the country’s oil and electricity infrastructure.
