Chevron Expands Stake in Venezuela's Orinoco Oil Ventures

Venezuelan authorities and U.S. oil company Chevron Corp. signed agreements on Monday to expand Chevron's operations in the country's Orinoco Belt, the world's largest proven crude reserves area, as part of efforts to revive the nation's energy sector.

The deal, finalized at the Miraflores presidential palace in Caracas, increases Chevron's stake in the Petroindependencia joint venture with state-owned Petróleos de Venezuela S.A., or PDVSA, from 35.8 percent to 49 percent. It also grants Chevron rights to develop the Ayacucho 8 block within its existing Petropiar joint venture. Both projects focus on extra-heavy crude production in the Orinoco region. In exchange, Chevron will transfer its interests in the Loran offshore gas field and a small oil field in western Venezuela to the state, allowing both parties to prioritize higher-potential assets.

The agreements mark one of the first major expansions since a January reform to Venezuela's hydrocarbons law, which permits greater private and foreign company participation to attract investment and restore output. Officials described the pacts as mutually beneficial, consolidating focus on strategic areas. Chevron's joint ventures...