Chevron announced it has agreed to an asset swap, through its subsidiaries with interests in Venezuela, with Petróleos de Venezuela S.A. (PDVSA) and subsidiaries of PDVSA in an agreement that aims to consolidate all parties’ focus on strategic assets in the country.
Under the agreement, Chevron will receive an additional 13.21% working interest in the Petroindependencia joint venture, increasing its total stake to 49%. In addition, the Petropiar joint venture, of which a Chevron subsidiary holds a 30% interest in, has been assigned the rights to develop the adjacent Ayacucho 8 area in the Orinoco Oil Belt of Venezuela.
In turn, Venezuela will receive from Chevron subsidiaries its 60% and 100% operated interests in the offshore Plataforma Deltana Block 21 and Block 32 gas licenses, respectively, and its 25.2% nonoperated interest in the Petroindependiente joint venture in western Venezuela.
“This agreement expands Chevron’s heavy oil position in two key joint ventures in Venezuela and reflects our disciplined development of the country’s significant resources. Ayacucho 8 is a producing asset in close proximity to Petropiar, which enhances development efficiencies,” said Javier La Rosa, Chevron president for base assets and emerging countries. “This asset swap marks another important step in Chevron’s long history in Venezuela and reinforces our role in supporting regional energy security.”
Chevron is one of the leading energy companies in Venezuela, with a presence that dates to 1923. Petroindependencia and Petropiar operate extra-heavy oil fields in the Orinoco Oil Belt.
Chevron has a broad production and exploration footprint across Latin America, with active operations spanning conventional formaitons, shale, and offshore assets. The company produces oil and gas across Argentina, Guyana, and Venezuela, supported by operated and nonoperated assets. In parallel, Chevron maintains an exploration portfolio with about 35 active exploration blocks across Brazil, Suriname, Uruguay, and Peru.
In addition, Bloomberg has reported that the Venezuelan government plans an imminent award to Chevron of two more oil fields in western Venezuela. Bloomberg cites an anonymous source, a person familiar with the matter who asked not to be identified before an official announcement.