Venezuela plans to grant Repsol and Chevron more oil exploration and production blocks

Venezuela plans to grant more oil exploration and production blocks to Repsol and Chevron in a move that is designed to help foreign operators rebuild the country’s energy sector, according to Bloomberg and the Madrid-based financial news platform Bolsamanía.

Officials in Caracas are ready to award the new blocks, as reported by Bloomberg. The aim would be to give US and European companies greater access to Venezuela’s vast reserves in an attempt to revitalize an industry that has deteriorated over the last decade, and reduce the influence of China and Russia in the country.

Venezuela’s National Assembly approved reforms to the hydrocarbons law in January 2026, granting private firms, including foreign companies, more autonomy and control over oil projects. But some oil majors remain cautious, citing unpaid debts, past nationalizations and political uncertainty despite Venezuela’s vast reserves.

Meanwhile, the Trump administration has issued licenses allowing a select group of Western energy companies to resume oil and gas operations in Venezuela, marking a significant shift in US sanctions policy as Washington seeks to revive the country’s oil-dependent economy. 

The permits authorize bp, Chevron, Eni, Repsol and Shell to engage in transactions with state-run Petróleos de Venezuela SA (PDVSA) under contracts governed by US law and reviewed every 90 days.

Chevron, already operating under a restricted license, will be allowed to expand its footprint, while other firms had previously seen permissions revoked as pressure mounted on Caracas. 

Some key developments and companies involved:

• Chevron Corp: As the only major US company currently pumping oil in Venezuela, Chevron is expanding its operations, including five onshore and offshore projects, and is expected to receive new, more productive oil blocks.
• Repsol SA and Eni SpA: These European firms hold significant interests in Venezuela, particularly the Cardon IV joint venture, a major offshore gas project (Perla field).
• Shell and bp: These companies are authorized to operate in Venezuela and are engaged in plans to develop the offshore Dragon gas field.

Despite these developments, the sector faces challenges due to years of underinvestment, dilapidated infrastructure, and an uncertain operating environment, with experts projecting that full recovery will take several years.