drilling

Caracas, April 13, 2026 (venezuelanalysis.com) – Venezuelan Acting President Delcy Rodríguez inked new agreements with Chevron on Monday allowing the US energy giant to expand its presence in the country’s oil industry.

In a televised broadcast, Rodríguez, who was accompanied by officials from Venezuelan state oil company PDVSA and the Hydrocarbon Ministry, praised Chevron’s “commitment” to Venezuela.

“Chevron, with more than a century of presence in Venezuela, is an example of an oil company committed to Venezuela,” she said. “I salute this agreement as an example that there are legal pathways for investment to be assured and prosper.“

The Venezuelan acting president reiterated calls for the lifting of US sanctions against the Caribbean nation. US Chargé d’Affaires to Venezuela Laura Dogu was present at the ceremony and exchanged brief words with Rodríguez. US Assistant Energy Secretary Kyle Haustveit was also in attendance with a delegation from the US Energy Department.

The new contracts grant Petropiar, a joint venture with Chevron participation, the Ayacucho 8 bloc as the Houston-based conglomerate looks to expand its production of extra-heavy crude in the Orinoco Oil Belt. PDVSA completed exploration and appraisal of the 500 square-kilometer bloc but development has been limited.

Chevron owns minority stakes in four joint projects with PDVSA that currently produce about a quarter of Venezuela’s oil output. The agreements with the Venezuelan government will also see Chevron increase its stake in Petroindependencia, another mixed venture with PDVSA, from 36 to 49 percent. In exchange, it will relinquish its stakes in the offshore Loran natural gas field.

For his part, Chevron executive Javier La Rosa, thanked the Venezuelan and US governments for their support and praised the “strengthening” of Chevron’s position in the Orinoco Oil Belt. “Chevron is determined to be a reliable partner and establish win-win relations,” he said.

The exploration of the 7.3 trillion cubic feet (tcf) Loran field, which is part of the Loran-Manatee joint deposit with Trinidad and Tobago, will reportedly be turned over to Shell. The UK-based multinational is also involved in several natural gas projects in Venezuelan waters and similar agreements with the Rodríguez administration are expected in the coming days.

In addition, Shell also closed a deal to take over the Carito and Pirital oilfields from PDVSA’s Punta de Mata division in eastern Monagas state. The projects produce light and medium crudes, as well as natural gas.

The new contracts were signed under the pro-business provisions established by a January overhaul of Venezuela’s Hydrocarbon Law. In a recent interview, National Assembly President Jorge Rodríguez stated that the reform incorporated “suggestions” from Western corporate giants, including Repsol.

The updated legislation grants private corporations expanded control over operations and sales, slashes royalties and income tax, and allows legal disputes to be settled in international arbitration bodies. The reform likewise allows PDVSA to lease out projects to private companies in exchange for a fixed share of the output.

Since the January 3 US bombings and kidnapping of President Nicolás Maduro, the Trump administration has exerted control over the Venezuelan oil industry, granting waivers to boost the involvement of Western conglomerates and mandating that royalty, tax, and dividend payments owed to Venezuela be made to US Treasury-run accounts. 

Financial sanctions against PDVSA, as well as threats of secondary sanctions against firms that do not receive Washington’s green light, remain in place. On Monday, Secretary of State Marco Rubio vowed that the US “would not allow” geopolitical adversaries such as China, Iran, and Russia to have a significant presence in the Venezuelan oil industry.

“We don’t need Venezuela’s oil,” he said in an interview. “What we’re not going to allow is for the oil industry in Venezuela to be controlled by adversaries of the United States.”

Venezuelan crude production increased in March to 988,000 barrels per day (bpd), up from 909,000 bpd in February, according to OPEC secondary sources. The figure is the highest output since the imposition of a US export embargo in January 2019.

For its part, PDVSA reported 1.095 million bpd of production last month, with a 75,000 bpd increase compared to February. The direct and secondary measurements have differed over time due to disagreements over the inclusion of natural gas liquids and condensates. Venezuelan Oil Minister Paula Henao announced a 1.3 million bpd target for the end of 2026.

According to Reuters, Venezuelan oil exports surpassed 1 million bpd in March, driven by several shipments to India’s leading refiner, Reliance Industries, amid the US-Israeli war against Iran and the latter’s closure of the Strait of Hormuz that has disrupted global energy flows and sent crude prices upwards of $90 per barrel

However, Venezuelan authorities have offered no information about the US-controlled oil exports, including details regarding the transfer of proceeds to Caracas. The White House has confirmed the return of US $500 million to Caracas out of an initial deal estimated at $2 billion, while Venezuelan officials have reported the purchase of US-manufactured medicines and equipment using “unblocked” funds.

Edited by Lucas Koerner in Fusagasugá, Colombia.

PetroTal (PTALF) reported a robust start to 2026, with Q1 production averaging 14,907 barrels of oil per day (bopd), outpacing management’s internal expectations.

While production saw a slight 2% sequential decline, the company maintained a strong liquidity position with $128.1 million in total

The Trump administration on Tuesday exempted oil and gas drilling in the Gulf of Mexico from the Endangered Species Act after Defense Secretary Pete Hegseth said environmentalists’ lawsuits against the industry threatened to hobble domestic energy supplies as the U.S. wages war against Iran.

Critics said the move by the government’s Endangered Species Committee could doom a rare whale species and harm other marine life. Nicknamed the “God Squad” by groups that say it can decide a species’ fate, the committee comprises several Trump administration officials and is chaired by Interior Secretary Doug Burgum.

It met Tuesday for the first time in more than three decades amid global oil shocks and soaring energy prices brought on by the Iran war. The U.S. pumps more oil than any other nation, but that hasn’t insulated it from spiking prices: The national average for a gallon of gasoline topped $4 on Tuesday for the first time since 2022.

“Disruptions to Gulf oil production doesn’t hurt just us, it benefits our adversaries,” Hegseth told the committee. “We cannot allow our own rules to weaken our standing and strengthen those who wish to harm us. When development in the Gulf is chilled, we are prevented from producing the energy we need as a country and as a department.”

Environmental groups sought unsuccessfully to block Tuesday’s meeting and pledged to challenge the exemption. They say the exemption would speed the extinction of the rare Rice’s whale, which is found exclusively in the Gulf of Mexico. Government biologists say only about 50 of the animals remain.

“If Trump is successful here, he could be the first person in history to knowingly extirpate a species from the face of the Earth. That’s how precarious the condition of the Rice’s whale is,” said Patrick Parenteau, emeritus professor of law at Vermont Law School.

President Trump has made increased fossil fuel production a central focus of his second term. He wants to open new areas of the gulf off the Florida coast to drilling and has proposed sweeping rollbacks of environmental regulations disliked by industry.

Hegseth had notified Burgum on March 13 that an Endangered Species Act exemption for oil and gas drilling in the gulf was “necessary for reasons of national security.”

Hegseth told committee members Tuesday that Iran’s efforts to block shipping through the world’s busiest oil route, the Strait of Hormuz, underscored the national security imperative of having robust domestic oil production. He said the energy industry is under threat from pending litigation from environmental groups challenging government approvals for drilling.

Industry observers said the Endangered Species Act exemption could have significant implications for energy companies by streamlining approvals of new projects and impeding opponents’ ability to derail drilling plans.

“Serial litigation from activist groups targeting a lawful, well-regulated industry should not be allowed to indefinitely obstruct projects of clear national importance,” said Erik Milito with the National Ocean Industries Assn., which represents offshore developers.

The Gulf of Mexico is one of the nation’s top oil regions, producing 2 million barrels a day. It accounts for almost 15% of crude pumped annually in the U.S., plus a small share of domestic natural gas production.

But the gulf also has been the scene of environmental disasters such as BP’s Deepwater Horizon blowout in 2010, which killed 11 workers and spilled 134 million gallons of oil. A spill in the gulf earlier this month spread 373 miles, contaminating at least six species and polluting seven protected natural reserves.

The Trump administration in mid-March approved BP’s new $5-billion ultra-deepwater drilling project in the Gulf of Mexico.

A 2025 National Marine Fisheries Service analysis determined the gulf oil and gas program was likely to harm several species of whales, sea turtles and gulf sturgeon that face potential harm from ship strikes, oil spills and other impacts.

The Endangered Species Committee was established in 1978 as a way to exempt projects from the Endangered Species Act, which makes it illegal to harm or kill species on a protected list, if no alternative would provide the same economic benefits in a region or if it was in the nation’s best interest.

Before this week, the panel had convened just three times in its 53-year history and issued only two exemptions. The first was in 1979 to allow construction on a dam on the Platte River in Wyoming, home to the whooping crane. It last met in 1992, allowing logging in northern spotted owl habitats in Oregon. That exemption request was later withdrawn.

Its latest meeting follows a federal judge’s ruling on Monday that struck down attempts during Trump’s first term to weaken rules regarding endangered species.

The panel’s members include the secretaries of Agriculture, Interior and the Army, the chairperson of the Council of Economic Advisors, and the administrators of both the Environmental Protection Agency and the National Oceanic and Atmospheric Administration. They all voted in favor of Hegseth’s request for an exemption.

Brown writes for the Associated Press.