Chevron is nearing the completion of negotiations to migrate all of its oil joint ventures in Venezuela into the country’s new energy framework, a move that would give the US energy major greater control over operations and open the door to key oilfield expansions, according to two sources close to the talks.
The agreement, expected to be announced Wednesday, includes a previously announced asset swap that would let Chevron’s Petropiar heavy crude project, its largest in Venezuela, expand into the neighboring Ayacucho 8 block. A second area within the vast Orinoco Belt is also part of the negotiations, aimed at expanding a smaller project there, one source said.
According to the sources, Chevron, Venezuela’s oil ministry, and state oil company PDVSA have also held recent talks about a potential new oil area that could be added to Chevron’s portfolio. A Chevron spokesperson declined to comment when contacted by Reuters. Sources said Wednesday’s signing is also expected to include contract migrations involving other foreign companies operating in the country.
