Chevron, Shell Near Venezuela Energy Agreements

Chevron was expected to sign agreements on Monday to return a gas field to Venezuela and participate in an extra heavy crude area in the country's main oil region, while Shell is set to sign a pact to receive the Loran gas field for operation, three sources close to the preparations said.

The agreements are part of expansions and changes taking place since the U.S. launched a $100 billion reconstruction plan for Venezuela's energy sector after capturing President Nicolas Maduro, and a sweeping reform of the country's main oil law was approved in January, encouraging foreign investment.

The pacts, whose specific terms are yet unknown, are expected to be signed by the companies with the oil ministry and state-owned company PDVSA in the presence of acting President Delcy Rodriguez, the sources said on condition of anonymity.

Chevron and Venezuela's oil ministry did not immediately reply to requests for comment. Shell declined to comment, but the energy major had previously told Reuters that Loran was an attractive investment opportunity as it extends into its Manatee field in Trinidad and Tobago.

Shell has been in advanced talks with Venezuela's government in recent weeks to develop oil and gas fields in the South American country, including Loran, sources told Reuters earlier this month. In March, it signed preliminary agreements with Rodriguez's administration to advance the Dragon gas project and the Carito and Pirital onshore crude and gas areas.

Chevron has been in parallel talks to relinquish Loran, which it explored and confirmed as having more than 7 trillion cubic feet of reserves years ago, but did not develop. The U.S. major is now focused on expanding Petropiar, its main oil project in Venezuela, into the neighboring Ayacucho 8 area in the vast Orinoco Belt.