Venezuela · ENERGY
Key Facts
- —What happened Eni signed a production contract for Junin 5 on 2 September 2026.
- —How big Junin 5 is a super giant heavy oil field in the Orinoco Belt.
- —The catch Eni becomes exclusive operator, but no investment figure is confirmed.
- —Who it hits The deal could boost Venezuela’s oil output and attract other firms.
- —What comes next Eni will manage technical, financial, and commercial aspects of the field.
Italy’s Eni has signed a contract to operate the Junin 5 heavy oil field in Venezuela. This Venezuela oil deal marks a step in the country’s efforts to revive its oil industry.
Italy’s Eni has signed a Venezuela oil deal to become the operator of the Junin 5 heavy oil field. The agreement, signed on 2 September 2026, marks a new step for the country’s oil sector.
Eni Signs Venezuela Oil Deal
Italy’s Eni signed a production participation contract with Venezuela on 2 September 2026. The deal makes Eni the exclusive operator of the Junin 5 heavy oil field in the Orinoco Belt.
The contract, called a Contrato de Participación Productiva de Hidrocarburos (CPPH), gives Eni technical, financial, and commercial responsibility for the project. Eni described the field as a super giant.
The signing took place in Caracas, according to reports. Venezuelan officials and Eni’s CEO Claudio Descalzi attended the ceremony.
What Is a Production Participation Contract?
A production participation contract is a deal where a foreign company helps develop an oil field. In return, the company gets a share of the oil produced.
This type of contract is common in Venezuela. The state oil company PDVSA partners with international firms.
Under this contract, Eni will manage the field’s operations. It will also handle the financial and commercial side.
Eni’s Role as Operator
Eni will manage the technical, financial, and commercial aspects of Junín 5 as exclusive operator.
Eni will fund the project, but no specific investment amount has been confirmed.
Descalzi’s Statement
Eni’s CEO Claudio Descalzi said the agreement represents ‘a new pillar for the revival of the country’s oil and gas sector.’ He spoke at a time when energy security is vital for global stability.
Descalzi personally signed the agreement in Caracas, alongside PDVSA’s leadership.
Background of the Deal
The process began with a head of terms signed on 28 April 2026. That initial agreement set the framework for the final contract.
Only Eni and Chevron have confirmed signatures. Other companies were reported to be on track to sign, but that is not verified.
Junin 5 Field Details
Junin 5 is in the Orinoco Belt, one of the world’s largest oil deposits. The field produces heavy oil, which is thick and needs special processing.
Eni did not disclose production figures for Junin 5. The field is considered a super giant, meaning it holds billions of barrels of oil.
Venezuela’s Oil Revival
Venezuela has the world’s largest proven oil reserves. Its industry has declined due to underinvestment and sanctions.
Eni signed a contract to operate the Junín 5 field. Chevron announced a $7 billion investment plan in Venezuela.
Chevron’s Separate Investment
Yahoo Finance and FOX Business reported this. Chevron’s deal is separate from Eni’s.
Other Companies in Talks
GeoPark announced a separate entry into Venezuela through the Bare Block, also in the Orinoco Belt.
The deal involves a 25-year production contract with PDVSA, under which GeoPark will operate and hold a 65% working interest.
GeoPark will fund all capital expenditures under approved work programs.
US Oversight and Sanctions
The US government was present at the signing ceremony, according to France 24.
Reuters reported that some major producers have raised red flags about the deals.
What This Means for Eni
Eni becomes operator of the Junín 5 field in Venezuela. The deal expands its presence in Latin America.
The financial risks are significant due to Venezuela’s instability. The deal aligns with Eni’s strategy to secure new reserves.
Next Steps
Eni will now begin technical work to develop Junin 5, including detailed planning and possibly new drilling.
The company will also work with PDVSA to ensure smooth operations. No timeline for first production has been announced.
Understanding PDVSA
PDVSA is Venezuela’s state-owned oil and natural gas company. It controls the country’s vast hydrocarbon resources.
PDVSA often partners with foreign firms to develop fields like Junin 5. These partnerships bring in technology and capital.
The Orinoco Belt
The Orinoco Belt is a huge area in Venezuela holding extra-heavy oil. It is one of the largest oil accumulations on Earth.
Oil there is thick and needs special methods to extract and process. This makes development costly and complex.
The Signing Ceremony
The contract for Junin 5 was signed in Caracas on 2 September 2026, with Venezuelan officials present. Eni’s CEO Claudio Descalzi attended the ceremony, as reported by Upstream Online.
The agreement is a Production Participation Contract, or CPP. It is a deal in which a private company works alongside the state oil company PDVSA.
This contract makes Eni the operator of Junin 5, meaning it runs the daily operations.
What Eni Said About the Deal
Eni’s 2 September 2026 release called it a ‘strategic contract’. Eni becomes operator of the ‘super giant’ Junin 5 field.
The release said Eni handles technical, financial, and commercial management.
Descalzi said the agreement “represents a new pillar for the revival of the country’s oil and gas sector”.
He said it comes at a historic time when energy security is vital to global stability. That security rests on abundant resources and varied supply routes.
Upstream Online reported this quote.
Background of the Junin 5 Deal
Before the signing, Eni and PDVSA signed a Head of Terms on 28 April 2026. It set the basic terms for the deal.
The final contract was signed on 2 September 2026, per Upstream Online.
The Junin 5 field is in the Orinoco Belt, one of the world’s largest oil deposits. Eni’s entry is part of a broader push by Venezuela to attract foreign investment to boost its oil production.
US Oversight and Sanctions Context
The signing happened under the watch of the US government, which has been overseeing deals between Venezuela and international oil companies. This is because the US has sanctions on Venezuela, but has allowed some companies to operate there under certain conditions.
Reuters reported on 1 September 2026 that some major oil producers raised concerns about Venezuela’s new deals.
The Junin 5 contract shows the US balancing sanctions with energy interests.
Next Steps for Eni and Junin 5
Eni has not yet stated specific next steps for Junin 5, but as operator, it will likely start planning development and production. The company will work with PDVSA to increase output from the field.
The contract is for 25 years, giving Eni a long-term role. Eni’s investment in Junin 5 is part of its strategy to expand in South America.
It will be watched closely by other oil companies.
Frequently Asked Questions
What is the Junin 5 oil field?
Junin 5 is a super giant heavy oil field in Venezuela’s Orinoco Belt. It is one of the largest oil deposits in the world.
What does Eni’s contract involve?
Eni becomes the exclusive operator of Junin 5. It will manage technical, financial, and commercial aspects of the field.
Who signed the agreement?
Eni’s CEO Claudio Descalzi signed the contract on 2 September 2026, alongside PDVSA’s leadership, in Caracas.
Why is this deal significant?
It marks a new step for Venezuela’s oil revival. It also shows growing international interest despite past sanctions.
Connected Coverage
Sources: Eni; Upstream Online; France 24; Reuters.
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