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.