Eni Reaches Agreement with Venezuela to Restart 35Bbbl Field

Eni SpA said Tuesday it has entered into a deal with Venezuela's Hydrocarbons Ministry and state-owned Petróleos de Venezuela SA (PdVSA) to relaunch activities at the Junin-5 heavy oil field in the Orinoco Belt.

Junin-5 holds 35 billion barrels of certified oil in place, according to Italian state-backed Eni, which owns 40 percent. PdVSA holds 60 percent.

The agreement was executed as part of a meeting between Eni chief executive Claudio Descalzi and Venezuelan Acting President Delcy Rodriguez and PdVSA CEO Héctor Obregón, Eni said in an online statement.

Recently Eni's 50:50 joint venture with Spain's Repsol SA signed an agreement to "sustainably continue and relaunch" production at the largest offshore gas field discovered in Latin America, the statement added. The Perla field in the Gulf of Venezuela is under the joint venture Cardón IV.

"In 2025, Eni's hydrocarbon production in the country amounted to 64,000 boe/d [barrels of oil equivalent a day], mainly from the Perla gas field, which represents approximately 35 percent of the country's total gas consumption", Eni said.

"Eni also holds a stake in the joint venture PetroSucre (PdVSA 74 percent, Eni 26 percent), which operates the Corocoro offshore field and a stake in Supermetanol, a petrochemical company active in the production of methanol", Eni confirmed.

Eni said it currently holds 6 mining licenses in the Gulf of Venezuela and the Gulf of Paria and in the onshore Orinoco.

It had expressed optimism about reviving its presence in the South American country after the U.S. captured Venezuelan leader Nicolás Maduro in January.

"Eni is exposed to credit exposure to recover its investment in Cardón IV due to the financial difficulties of PdVSA following the U.S. sanctions regime in force through 2025. However, in early 2026 certain developments were recorded in the relations between Venezuela and the United States which are expected to improve the outlook for the country's oil sector", Eni said in its annual report published March 23.

"These developments could, compared with the past, partially mitigate the uncertainty of the operating environment in relation to the recovery of Eni's trade receivables from the state-owned oil company PdVSA and may give rise to potential business opportunities, subject to the evolution of the relevant regulatory and operating conditions".

On February 18, over a month after U.S. forces deposed Maduro, the U.S. Treasury's Office of Foreign Assets Control issued General License (GL) 50A providing several oil majors exemptions from Washington's sanctions against Caracas. GL 50A covers Eni, Repsol, Britain's BP PLC, Houston-based Chevron Corp, Paris-based Etablissements Maurel et Prom SA and Britain's Shell PLC.

Eni's partner in Cardón IV, Repsol, said earlier this month it had used the license to execute a deal with Venezuela on new terms that would see Repsol increase oil production.

Under the new agreement with the government and PdVSA, Repsol would grow its Venezuelan gross production by 50 percent within 12 months and triple it over the next three years, Repsol said in an online statement April 16.

"Repsol's gross production of oil in Venezuela currently amounts to around 45,000 barrels per day, mainly in Petroquiriquire", the statement said.

Repsol would reassume operational control of the Petroquiriquire field, where it owns 40 percent. PdVSA has 60 percent.

Among conditions for the production increase, Repsol must be able to use proceeds generated in Venezuela, the statement said.

GL50A states, "Any payments of oil or gas taxes or royalties to the government of Venezuela, PdVSA, or any PdVSA entity must be paid into the Foreign Government Deposit Funds or any other account as instructed by the U.S. Department of the Treasury".

Days after Maduro's capture, U.S. President Donald Trump issued an executive order that bars the judiciary from interfering with Venezuelan funds - designated as "Foreign Government Deposit Funds" - collected by the U.S.

"Unless licensed or otherwise authorized pursuant to this order, any attachment, judgment, decree, lien, execution, garnishment, or other judicial process is prohibited, and shall be deemed null and void, with respect to the Foreign Government Deposit Funds", Trump decreed January 9.

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