Venezuela seeks oil comeback as Eni relaunches key project

Italy’s energy group Eni has agreed to resume operations at a major heavy oil project in Venezuela, marking a significant step in efforts to revive the country’s energy sector amid shifting global supply dynamics.

The agreement, signed with Venezuela’s Ministry of Hydrocarbons and state-owned oil company PDVSA, focuses on restarting activity at the Junin-5 block in the Orinoco Belt. The project is structured as a joint venture, with PDVSA holding a majority stake and Eni maintaining a substantial minority share. The field is estimated to contain around 35 billion barrels of oil, underlining its strategic importance.

The Orinoco Belt is widely regarded as one of the world’s largest concentrations of extra-heavy crude, making it a key asset for Venezuela’s long-term production potential.

The move comes as Venezuelan authorities seek to attract foreign investment and rebuild output following years of economic disruption and underinvestment. Recent policy changes aimed at opening the sector have created conditions for international companies to expand their involvement in the country’s upstream industry.

Eni’s chief executive Claudio Descalzi travelled to Caracas for discussions with senior officials, including interim leadership figures, signalling high-level engagement as both sides explore opportunities to increase production capacity.

The timing of the agreement is notable, coinciding with ongoing uncertainty in global oil markets. Disruptions to supply in the Middle East have contributed to upward pressure on prices, prompting renewed attention on alternative sources of crude.

Analysts suggest that a gradual increase in Venezuelan output could help ease some of the strain on global supply, although significant operational and infrastructure challenges remain. Heavy crude extraction in the Orinoco region requires advanced processing and sustained investment, factors that have historically constrained production levels.

The agreement is therefore seen as an early step in a broader recovery effort rather than an immediate boost to output. Its success will depend on continued political stability, regulatory clarity and the ability to restore critical infrastructure.

As global energy markets adapt to ongoing geopolitical shifts, developments in Venezuela’s oil sector are likely to be closely monitored, particularly given the scale of its untapped reserves and the potential role they could play in balancing future supply.