BAKU, Azerbaijan, September 3. Italy’s Eni and Venezuela’s state-owned oil company PDVSA have signed a Hydrocarbons Production Sharing Contract (PSC) for the development of the Junín 5 giant oil field in Venezuela’s onshore Orinoco Belt, Eni said.
The agreement completes a process launched with the signing of Heads of Terms on April 28, 2026, aimed at reviving oil production at Junín 5 by transitioning from the existing operating model of the Petrojunín joint venture, in which Eni holds a 40% stake and PDVSA 60%, to a new contractual framework established under the PSC regime introduced by Venezuela’s Organic Hydrocarbons Law, approved by the National Assembly in January 2026.
Under the 25-year PSC, which may be extended, Eni will serve as the exclusive operator of the Junín 5 area and assume full responsibility for the project’s technical, financial and commercial management.
Junín 5 is a heavy oil field with 35 billion barrels of certified oil in place. The field currently produces around 12,000 barrels per day.
Eni also has a significant presence in Venezuela’s natural gas sector. Through Cardón IV, a 50-50 joint venture with Spain’s Repsol, the Italian company operates the Perla field under the Cardón IV license. Perla is the largest offshore gas field discovered in Latin America.
Cardón IV recently signed a Sustainability Agreement providing for the continued and expanded production of Perla, with higher volumes earmarked for the domestic market and a framework for potential additional gas exports in the future.
Eni also holds a 26% stake in the PetroSucre joint venture, alongside PDVSA, which owns 74%. The venture operates the offshore Corocoro oil field. Eni also has a stake in Supermetanol, a petrochemical company involved in methanol production.
Eni has operated in Venezuela since 1998 and holds six hydrocarbon licenses in the country, spanning offshore areas in the Gulf of Venezuela and the Gulf of Paria as well as onshore assets in the Orinoco region.
In 2025, Eni’s equity hydrocarbon production in Venezuela averaged 64,000 barrels of oil equivalent per day, primarily from the Perla gas field, which supplies around 35% of the country’s total gas consumption.
Venezuela’s oil sector
Venezuela holds the world’s largest proven crude oil reserves. OPEC’s latest statistical data put the country’s proven reserves at around 303 billion barrels, the highest among OPEC members. Its average crude oil production stood at approximately 921,000 barrels per day in 2024, according to OPEC data.
Output increased in 2025 as the country sought to restore production capacity and develop its vast heavy-oil resources. OPEC data based on direct communications showed Venezuelan crude production reaching 1.069 million barrels per day in June 2025, up from 982,000 bpd in the first quarter and 933,000 bpd in the fourth quarter of 2024.
Venezuela’s oil industry remains dominated by PDVSA, with international companies participating through joint ventures and other contractual arrangements. Much of the country’s crude is heavy or extra-heavy, requiring specialized technology and infrastructure for production, transportation and refining.
The refining sector remains strategically important but continues to face substantial infrastructure and operational challenges. OPEC reported installed refining capacity of about 1.3 million barrels per day in 2024, while actual refinery throughput was significantly lower.
The outlook for Venezuela’s oil industry also remains closely tied to international sanctions and licensing policies. Changes in the regulatory environment governing foreign companies’ operations can directly affect production, investment, exports and access to technology.
