Eni S.p.A (NYSE:E) announced on September 2 that it had signed a new 25-year production sharing agreement with Venezuela’s state-owned PDVSA related to the large Junin 5 heavy oil area in the country’s Orinoco Belt. The deal also makes Eni the exclusive operator of the giant heavy-oil field and gives it responsibility for the technical, financial, and commercial management.
The Italian energy giant plans to invest $1.5 billion annually to expand Junin 5, which contains 35 billion barrels of certified oil and currently produces approximately 12,000 barrels per day. Eni has held an interest in the Junín 5 field since 2010, but the project had stalled for years amid sanctions and payment disputes.
Eni has been present in Venezuela since 1998, and its production in the country averaged about 64,000 boepd in 2025. The company has also recently signed an agreement to sustain and increase output at the Cardón IV gas project, which includes the Perla field, touted as “the largest offshore gas discovery in Latin America.”
The deal follows an energy conference in Caracas and is part of a broader push by the Trump administration to bring global energy companies back into Venezuela and revive the country’s dilapidated oil infrastructure.
Claudio Descalzi, CEO of Eni, stated:
“This agreement represents a new pillar for the revival of the country’s oil and gas sector, at a historic time when energy security, based on abundant resources and diversified supply routes, is vital to global stability. Venezuela can now embark on a path of energy development and economic growth that can bring significant benefits to the local population and to global energy availability. The operatorship of an important area such as Junín 5 is recognition of our ability to deliver complex projects quickly and efficiently, and it reinforces our long-standing presence in the country, which we have never abandoned, continuing to provide energy to the local population even during the most difficult times.”
Why Junin 5 Could Be a Game-Changer for Eni:
Junin 5 is a super-giant oil field and provides a significant long-term growth opportunity for Eni. The field is currently producing only a fraction of what the company believes it can achieve, and the annual $1.5 billion injection could help transform it from a modest contributor into a major source of production in the next few years. Eni is targeting to produce 400,000 bpd from all its oil projects by the end of this decade.
Moreover, being the operator, the Italian company will have greater control over development, investment decisions, and production growth. The 25-year production-sharing timeline also gives Eni a long-term framework to recover its investment and capitalize on the project’s future economics.
