Eni and Petróleos de Venezuela (PDVSA), Venezuela’s state-owned oil company, recently signed a contract concerning the development of the Junín 5 giant oil field onshore in the Orinoco Belt.
The contract, which has a duration of 25 years with the possibility of extension, grants Eni the role of exclusive operator of the Junín 5 area, with full responsibility for the technical, financial, and commercial management of the project. Junín 5 is a heavy-oil field containing 35 billion bbl of certified oil in place. It currently produces approximately 12,000 B/D.
The signing of the Contrato de Participación Productiva de Hidrocarburos (CPPH) marks the completion of the process launched with the signing of the Head of Terms on 28 April, with the aim of reviving oil production through the transition from the current operating model of the Petrojunínjoint venture (Eni 40%, PDVSA 60%) to the new contractual regime established under the CPPH, introduced by the Organic Hydrocarbons Law approved by the Venezuelan National Assembly in January.
“This agreement represents a new pillar for the revival of the country’s oil and gas sector at a historic time when energy security, based on abundant resources and diversified supply routes, is vital to global stability,” said Claudio Descalzi, Eni’s CEO. “Venezuela can now embark on a path of energy development and economic growth that can bring significant benefits to the local population and to global energy availability.”
In Venezuela, Eni is also engaged in the development of natural gas projects. Through the Cardón IV company, jointly owned by Eni (50%) and Repsol (50%), Eni operates the Perla field within the Cardón IV license, the largest offshore gas field discovered in Latin America. Cardón IV recently signed the Sustainability Agreement, which provides for the sustainable continuation and expansion of Perla’s production, increasing volumes supplied to the domestic market and defining the conditions for future additional gas exports.
Eni also holds a stake in the PetroSucre joint venture (PDVSA 74%, Eni 26%), which operates the offshore Corocoro oil field, as well as a stake in Supermetanol, a petrochemical company engaged in methanol production.
Eni has been in Venezuela since 1998. The company holds six mining licenses in the country, offshore in the Gulf of Venezuela and the Gulf of Paria and onshore in the Orinoco region. In 2025, Eni’s equity hydrocarbon production in the country amounted to 64,000 BOE/D, mainly from the Perla gas field, which accounts for approximately 35% of the country’s total gas consumption.
Bare Block Redevelopment
Also in the Orinoco Belt, independent energy company GeoPark has announced its strategic entry into Venezuela through the Bare Block, a large-scale heavy-oil-producing asset.
GeoPark said it expects to demonstrate a long-term commitment to Venezuela through increased investment, production acceleration, infrastructure rehabilitation, and long-term reserves growth.
“Venezuela’s energy sector reactivation represents one of Latin America’s most important industrial opportunities,” said Felipe Bayon, GeoPark’s CEO. “The Bare Block offers massive scale, existing infrastructure, production history, and material redevelopment potential in one of the world’s largest hydrocarbon basins. GeoPark is well positioned to pursue this opportunity responsibly, combining brownfield expertise, regional operating experience, and capital discipline.”
The Bare opportunity was led by Grupo Gilinski, whose strategic presence in Venezuela was instrumental in securing a 25-year production participation contract (CPP) framework with PDVSA. The transaction was financed with GeoPark equity to preserve its financial strength and cash position and is expected to result in Grupo Gilinski indirectly acquiring control of GeoPark.
“We believe in Venezuela’s potential and in GeoPark’s ability to develop Bare responsibly,” said Jaime Gilinski, chairman of Grupo Gilinski.
The CPP framework is the contractual structure through which the Bare redevelopment will be advanced with PDVSA under the framework established by Venezuela’s Organic Hydrocarbons Law and its recently issued regulations. Under the CPP, GeoPark, as operator, will fund 100% of capital expenditures under approved work programs and hold a 65% net working interest. The operator holds the rights to commercialize and monetize hydrocarbons.
The CPP effective date remains subject to applicable approvals, authorizations, regulatory requirements and sanctions-related compliance requirements.