Continental Resources has signed an agreement with the state-owned PDVSA of Venezuela for the operation and development of the Ayacucho 2 field in the Orinoco oil belt. This agreement marks the entry of this independent American company into the Venezuelan market.
Details of Ayacucho 2 Field
The Ayacucho 2 field, located in the Anzoátegui state, covers an area of 126,000 hectares and is estimated to contain about 30 billion barrels of oil. After signing the final contract, Continental Resources will hold 100 percent of the operational interests in this field.
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Development of Collaborations and Opportunities
Continental and PDVSA plan to advance a long-term CPP (Contrato de Participación Productiva) agreement in the coming weeks. This agreement is essentially a preliminary agreement and not a final development contract. Doug Lawler, President and CEO of Continental Resources, stated, "The Ayacucho 2 field is an outstanding addition to our portfolio and will significantly contribute to Continental's growth."
This agreement has been signed at a time when foreign investments in Venezuela's oil sector are expanding. Chris Wright, the U.S. Secretary of Energy, announced on Wednesday that one of the American producers is preparing to announce a major investment in Venezuela. This comes as foreign countries are entering or restructuring development agreements under the country's revised energy framework.
Continental has stated that the proposed development of this field will bring in private capital, technology, and operational expertise to the Ayacucho 2 field. The company is also exploring additional opportunities in Venezuela and is expanding its international portfolio, which includes the Vaca Muerta shale field in Argentina.
The expansion in Venezuela will complement Continental's core activities in the United States and has been described as one of the largest resource opportunities in the company's nearly 60-year history.
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