U.S. oil major Chevron, General Electric's energy business GE Vernova, India's state-run Oil and Natural Gas Corporation (ONGC), Italy's Eni and Colombia's GeoPark are among the companies expected to complete agreements with Venezuelan authorities, five sources close to the discussions said.
Some of the agreements could be signed as early as this week, although the final list of companies remains unsettled as executives and Venezuelan officials work to conclude negotiations.
Two of the sources said discussions were still continuing and that the companies ultimately signing agreements could change as negotiations enter their final stage.
Most of the proposed deals are understood to involve the migration of existing oil contracts to Venezuela's amended hydrocarbons law.
The new legal framework gives foreign companies greater flexibility to participate in the operation and expansion of oilfields, export crude and receive proceeds from oil sales in cash.
Other agreements are expected to cover new energy and electricity projects, broadening the negotiations beyond crude oil production.
Chevron is expected to secure agreements that could be “of significant size,” according to one source familiar with the preparations.
The U.S. company is seeking to add an oil block in Venezuela's enormous Orinoco Belt to its existing portfolio, two sources said. Such an addition could allow Chevron to expand one of its joint ventures with Venezuela's state-owned oil company, PDVSA.
Chevron is also seeking to negotiate an area in Monagas North, which could become an important source of diluents needed to process and transport Venezuela's extra-heavy crude oil, according to the sources.
The negotiations come as Venezuela seeks to revive an energy industry that has suffered years of underinvestment, declining production and international sanctions.
For foreign energy companies, the changes to the country's hydrocarbons framework could provide greater control over operations and increased opportunities to participate in projects involving one of the world's largest oil reserves.
Eni confirmed that it was engaged with Venezuelan partners as efforts continue to revive the country's energy sector.
The Italian company said it was working with its Venezuelan counterparties and relevant authorities to “support the revitalization of the country's energy sector.”
Chevron, GE Vernova, ONGC, GeoPark, Venezuela's oil ministry and PDVSA did not immediately respond to requests for comment.
Separate from Major Caracas-Washington Oil Pact
The proposed company agreements are separate from a much larger Caracas-Washington arrangement announced last week under which the United States is expected to secure a stake in 17 Venezuelan oilfields.
Those fields, located mainly in the Orinoco Belt and around Lake Maracaibo, contain about 64 billion barrels of proved reserves, representing roughly a fifth of Venezuela's total crude reserves.
Venezuelan authorities have said the 17 fields could eventually produce as much as 1.5 million barrels per day (bpd).
That level would be more than double Venezuela's current production of about 1.25 million bpd, underscoring the scale of the country's ambitions to rebuild its oil industry.
The potential increase has also attracted attention in Washington, where officials have linked additional Venezuelan production to global oil-market stability.
Asked when the Venezuela agreement would begin translating into higher oil output, U.S. Vice President JD Vance pointed to what he described as an increase already taking place.
“There’s already a significant increase in oil production out of Venezuela,” Vance told reporters.
He also linked Venezuela's large reserves to recent stability in global oil prices, saying: “They’re (oil prices) sort of much more stable in part because what we see coming out of Venezuela.”
“The 65 billion-barrel reserve is a big part of that we’re already seeing,” he added.
The prospective agreements with Chevron, Eni, ONGC, GE Vernova and GeoPark would add another layer to Venezuela's efforts to attract foreign capital and technical expertise into its energy industry.
For the companies involved, the deals could provide access to some of the world's largest oil resources while offering Venezuela additional investment, technology and operational capacity needed to increase production.
With negotiations still continuing, however, the precise terms and final roster of companies expected to sign remain subject to last-minute changes.