Per the sources, Chevron is in talks to expand production at its Petropiar joint venture operation with PDVSA, tapping an adjacent deposit to the one currently under exploitation. The supermajor is currently seeking to negotiate lower royalty rates for the new deposit, Reuters also said in its report, adding it would also seek additional incentives made available under Venezuela’s new oil law.
If the deal is finalised, Chevron would become the largest private producer of heavy crude in Venezuela’s Orinoco Belt.
Shell, meanwhile, is in talks for the development of fields in eastern Venezuela, in the Monagas North area. Reuters noted that the area contains some of Venezuela’s few deposits of light and medium crude. Shell also has plans for developing natural gas resources in Venezuela, both offshore and onshore, the company told Reuters in a statement concerning the news of the negotiations.