The Daily Journal.— U.S.-based Pacific Coast Energy Company (PCEC) plans to invest $3.5 billion over the life of its contracts with Petróleos de Venezuela (PDVSA) to reactivate and develop oil fields in the Delta and Cabimas blocks, the company said.
PCEC, a California-based company specializing in heavy crude production, took over operations at the fields during the third quarter of 2026. The company expects to double production within six months from an initial baseline of 19,300 barrels per day (bpd).
Under its development program, PCEC projects peak production of 150,000 to 160,000 bpd for more than a decade, according to figures the company released.
The oil company said it has already reactivated more than 50 wells and deployed four drilling rigs after launching the project without any rigs in operation. PCEC will use the equipment as part of a program to reactivate 900 wells in Cabimas.
In the Delta block, PCEC also launched a campaign to replace electric submersible pumps (ESPs) in 37 wells. The company delivered the first unit less than 30 days after taking over operations and said it represents the first new ESP purchased for the block in eight years.
The company also said it has committed $80 million to materials and services, hiring 18 material suppliers and 35 local service companies.
The operational rollout has also created jobs for more than 1,000 Venezuelan workers, the company said.
A plan to increase the recovery factor
PCEC and PDVSA structured their agreements under Productive Participation Contracts (CPPs), which give PCEC operational control of the projects and responsibility for their technical, financial, and commercial management.
The redevelopment plan targets cumulative gross production of 1 billion barrels, while the company aims to increase the fields’ average recovery factor from the current 13% to between 16% and 18%.
PCEC says that even after achieving that increase, the assets would still hold a significant volume of recoverable resources.
“PCEC’s early capital commitment, management experience and technical expertise in revitalizing these heavy crude assets are already delivering results that exceed expectations,” said Klaus Hasbo, the company’s chief executive officer.
Hasbo highlighted hiring local workers and deploying upgraded equipment as key elements of the company’s strategy to restore production at fields that had remained partially inactive.
“We are excited to contribute to Venezuela’s economic recovery,” Hasbo added.
PCEC maintains corporate offices in Houston and Caracas, as well as operational facilities in Maturín and Cabimas. The company specializes in acquiring and rehabilitating energy assets in mature and emerging producing regions, with experience in oil projects ranging from light to extra-heavy crude.
