Italian energy company Eni signed an agreement with Venezuela's state-owned oil group PDVSA on Wednesday, September 2, 2026, to develop the Junin 5 oil project. The deal converts Eni's existing interest into a 25-year production-sharing agreement where Eni will serve as the field operator. Analysts stated on Friday, September 4, that the deal enhances Eni's ability to recover more than $2.3 billion in outstanding debt accumulated from PDVSA.
The agreement comes as the United States and Venezuela move toward reopening the country's oil sector to international investment. Eni has operated in Venezuela for nearly three decades and faced a choice between deepening its investment or risking its claims as the U.S. government works to restructure old Venezuelan debt. U.S. Energy Secretary Chris Wright and Venezuelan Vice President Delcy Rodriguez attended a signing ceremony for oil deals in Caracas.
Under the new terms, Eni and PDVSA plan to invest approximately $1.5 billion annually in the Junin 5 project, located in the Orinoco Belt. The field currently produces 12,000 barrels per day (bpd), with a target to reach 400,000 bpd by 2030. Eni Chief Executive Claudio Descalzi stated on Wednesday that drilling for the first new well would begin the following day. Additionally, a separate March 2026 pact regarding the Perla natural gas field, which is owed $400 million, opened the possibility for future gas exports.
The Italian company currently produces 64,000 barrels of oil equivalent per day (boepd) in the country, and industry sources suggest this could eventually rise to 1 million boepd. The deal also carries policy implications as the United States attempts to manage Venezuela's debt burden. Energy Secretary Wright stated that China would have no claim on revenue from Venezuelan fields partially controlled by Washington. While drilling was scheduled to begin on Thursday, September 3, 2026, the long-term production goals are set for 2030, and there has been no news on changes to other projects, such as the Corocoro offshore field.