Chevron Seeks Lower Royalties for Petropiar Expansion as Shell Eyes Monagas North
Chevron is negotiating expansions at its Petropiar joint venture in Venezuela’s Orinoco Belt, seeking to tap an adjacent deposit under lower royalty rates and additional incentives in the country’s new oil law. Shell is in parallel talks to develop light and medium crude fields in Monagas North.
1. Chevron’s Petropiar Expansion Negotiations
Chevron is negotiating to expand output at Petropiar, tapping an adjacent heavy crude deposit. Talks include seeking lower royalty rates and securing incentives under Venezuela’s recently enacted oil law, which caps royalties at 30% and allows project-specific terms.
2. Shell’s Monagas North Development Talks
Shell is in talks to develop light and medium crude fields in Monagas North, targeting assets rare in eastern Venezuela. The company also plans offshore and onshore natural gas projects under the new regulatory framework.
3. New Oil Law Incentives and Impact
The new oil law grants full management control to private operators at their own risk once business plans are approved by the oil ministry. It caps royalties at 30% but permits tailored rates, aiming to attract up to $1.4 billion in fresh oil investments this year.