Chevron, ENI ink pacts for large oil project expansions in Venezuela

Energy producers U.S. Chevron and Italy's ENI signed key agreements with Venezuela on Wednesday, committing to large oil project expansions aimed at boosting the OPEC country's production, government officials and executives said. The deals are ‌not linked to the controversial Caracas-Washington deal that gives the U.S. access to 17 large oilfields. Most of the ‌pacts relate to project expansions that have been in negotiation with Venezuela's oil ministry and state oil company PDVSA as part of the migration of dozens of energy contracts to new terms under a sweeping oil reform approved in January.

Still, the signings represents the latest effort ⁠by private companies ​with a longstanding presence ⁠in Venezuela to help revive its struggling oil industry, which currently produces about 1.25 million barrels per day (bpd), far short of its 3 million bpd ⁠peak reached in the late 1990s. "What we need is not just signing papers, we need barrels," said ENI's Chief Executive ​Claudio Descalzi during the event, held at the Miraflores presidential palace in Caracas.

Most oil majors have eschewed ⁠major investment in the country for years, retreating after the 2007 nationalization. The industry has also faltered due to lack of investment, mismanagement and sanctions ⁠imposed ​by the U.S., which is now spearheading a $100 billion investment plan that officials say will double output in coming years. Chevron's Chief Executive Mike Wirth said the company is committed not only to these projects, but to build ⁠on a century of progress. The company has maintained a consistent presence in Venezuela even after other oil majors left ⁠following the seizure of assets ⁠under former President Hugo Chavez.

Other companies that inked agreements on Wednesday include power company GE Vernova, energy firm Primavera and Denver-based oil service firm Aspect.