Venezuela has unveiled fresh agreements with US companies covering oil and gold extraction, marking another major step in the country’s efforts to revive its energy and mining sectors with Washington’s backing.
Major oil project in Orinoco Belt
US oil producer Continental Resources signed a memorandum of understanding with Venezuela’s state-owned PDVSA to operate and develop the Ayacucho 2 Block in the Orinoco Belt.
The block covers around 126,000 acres and is estimated to contain about 30 billion barrels of oil resources. Continental plans to undertake exploration and development work, with the company expecting first production potentially within 18 months, although significant technical and infrastructure work remains.
The agreement is expected to be followed by a longer-term production arrangement between Continental and PDVSA.
Gold investment also announced
Alongside the oil agreement, New York-based Heeney Capital secured operational and export rights linked to Venezuela’s Choco gold mine in El Callao, Bolívar state.
The company, working with commodities trader Mercuria Energy, plans an initial investment of up to US$1 billion. The agreement gives Heeney a 30-year operating and export arrangement.
Washington backs renewed investment
US Energy Secretary Chris Wright described the Continental agreement as a milestone in US-Venezuelan relations and in efforts to strengthen energy production in the Western Hemisphere.
The latest agreements follow broader US-backed efforts to attract international investment into Venezuela’s oil industry, which has suffered from years of underinvestment, operational difficulties and sanctions.
The developments could bring fresh capital, technology and expertise into Venezuela’s energy sector, while also deepening US involvement in the country’s vast natural-resource base.