Chevron is about to finalize negotiations to migrate all its oil joint ventures in Venezuela into the country’s new energy framework, allowing the U.S. major more control over operations and key oilfield expansions, two sources close to the negotiations said.
The agreement, expected to be announced on Wednesday, will include a previously announced asset swap allowing the company’s Petropiar heavy crude project, its largest in Venezuela, to expand to the neighboring Ayacucho 8 block. A second area in the vast Orinoco Belt also is involved in the negotiations to expand a smaller project there, the source said.
The company, Venezuela’s oil ministry and state-run PDVSA also have held recent talks for a potential new oil area that could be added to the portfolio, according to the sources.
A Chevron spokesperson declined to comment when contacted by Reuters. The agreement signing on Wednesday is expected to include contract migrations with other foreign companies, the sources said.
(Reporting by Marianna Parraga in Houston; Editing by Nathan Crooks)