Italian oil major Eni SpA is deepening its involvement in Venezuela's energy sector as the US seeks greater control over the country's vast reserves.
Eni stated it's collaborating with Venezuelan counterparts and other involved authorities to support the country's energy sector recovery. The company said it couldn't share specific next steps yet but would provide details once finalized.
The comments come as Trump's team is lobbying for significant sway over Venezuela's oil industry. The US proposal would give it control over 55% of effective output from joint ventures covering fields holding proven reserves of roughly 65 billion barrels.
Eni is expanding its Venezuelan presence through multiple projects. The firm is in talks to finalize agreements for the Junín-5 and Corocoro oil developments. It has just finalized an export deal for natural gas from the giant Perla field, one of Venezuela's largest natural gas assets.
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CEO Claudio Descalzi reported positive progress in talks alongside Venezuela's energy ministry and nationalil company PDVSA during Eni's July 29 earnings call. He confirmed the company was sharing its strategy with US partners.
Eni's Venezuelan assets hold recoverable resources exceeding 5.5 billion barrels. The company earlier reported roughly $3 billion in outstanding receivables owed by PDVSA.
Eni shares traded at €22.79, up 0.35%, as of August 29 at 9:15 AM EDT. Crude oil prices stood at $83.40 per barrel, up 0.16%.
Why this matters: Venezuela holds the world's largest oil reserves but has seen production collapse. The competing interests of international firms and governments could reshape control over these critical energy assets.