Chevron and ONGC Poised for Final Venezuela Energy Contracts

Venezuela spent the last six months recalibrating its hydrocarbons law to incentivize foreign capital. The revised framework allows companies to retain direct control over crude exports and proceeds, a sharp departure from the rigid state-controlled systems of previous decades. Chevron is negotiating a significant expansion in the Orinoco Belt and northern Monagas to secure essential diluents for its extra-heavy crude production. Meanwhile, India’s state producer ONGC aims to invest $200 million into the San Cristobal field, targeting a tenfold increase in output.

These upcoming signatures follow recent deals involving SLB and Hunt Oil, reflecting a broader effort by Caracas to attract investment after years of industry decay. While these agreements are distinct from the massive U.S.-Venezuela pact covering 17 oilfields and 64 billion barrels of reserves, they highlight a growing trend of foreign reentry. Although Chevron has maintained a consistent presence throughout the Maduro administration, other giants like ExxonMobil and ConocoPhillips remain on the sidelines, awaiting stronger legal protections and fiscal clarity before committing to a return.