Eni Secures Sweeping 25 Year Mandate for Venezuela’s Giant Junín 5 Field

Eni SPA has signed a major production participation contract for Junín 5 oil field, taking exclusive operating responsibility for one of the largest heavy oil accumulations in Venezuela.

The agreement places the Italian energy company at the center of plans to revive output from the onshore asset in the Orinoco Belt.

The Contrato de Participación Productiva de Hidrocarburos, known as the CPPH, establishes a 25 year contractual term with the possibility of an extension.

Under the agreement, Eni assumes full responsibility for the technical, financial, and commercial management of the Junín 5 development.

That operating mandate gives Eni broad authority over decisions affecting production, investment, field planning, and the commercial handling of hydrocarbons.

It also represents a significant shift from the previous joint venture structure through which the field had been managed.

Junín 5 contains an estimated 35 billion bbl of certified oil in place, making it a vast resource even by the standards of the Orinoco Belt.

Current production is about 12,000 b/d, leaving considerable room for output recovery if Eni can mobilize capital, equipment, and technical expertise.

The CPPH completes a process that began with the signing of the Head of Terms on April 28, 2026.

That preliminary agreement laid the foundation for moving Junín 5 into a new operating and contractual framework intended to stimulate production.

The former operating model centered on the Petrojunín joint venture, in which Eni held 40% and Venezuelan state oil company PDVSA controlled 60%.

The new structure gives Eni the exclusive operator role while placing the project under Venezuela’s recently introduced production participation regime.

That regime was established through the Organic Hydrocarbons Law approved by the Venezuelan National Assembly in January 2026.

The legislation created the legal basis for CPPH contracts as Venezuela seeks new mechanisms to attract investment and restore performance across its hydrocarbon sector.

Developing Junín 5 presents a substantial industrial challenge because the field contains heavy crude that requires specialized production, handling, upgrading, and transportation capabilities.

Eni will need to coordinate technical planning with disciplined capital management as it works to raise production from the current level.

The agreement also deepens Eni’s already extensive position in Venezuela. The company holds six mining licenses spanning offshore acreage in the Gulf of Venezuela and Gulf of Paria, as well as onshore assets in the Orinoco region.

Natural gas forms another critical part of Eni’s Venezuelan portfolio. Through Cardón IV, which is owned equally by Eni and Repsol, the company participates in the development of Perla field, the largest offshore gas discovery recorded in Latin America.

Eni operates Perla within the Cardón IV license, giving the company a central role in supplying Venezuela’s domestic gas system.

Production from the field accounts for about 35% of total national gas consumption, highlighting its strategic importance to households, power generation, and industry.

Cardón IV recently signed a Sustainability Agreement covering the continued operation and expansion of Perla production.

The arrangement is designed to increase volumes delivered to Venezuela’s domestic market while establishing conditions for additional gas exports in the future.

The prospect of future export volumes could expand the commercial importance of the Perla development beyond Venezuela.

Any increase would depend on production capacity, infrastructure readiness, contractual arrangements, and the availability of viable markets for additional gas supplies.

Eni also owns 26% of the PetroSucre joint venture, while PDVSA holds the remaining 74%. PetroSucre operates Corocoro oil field offshore Venezuela, adding another producing asset to Eni’s combination of crude oil and natural gas interests in the country.

During 2025, Eni’s equity hydrocarbon production in Venezuela averaged 64,000 boe/d.

Most of that output came from Perla gas field, confirming that natural gas remains the largest contributor to the company’s current Venezuelan production base.

The Junín 5 agreement now adds a potentially transformative heavy oil growth platform to that portfolio.

With 35 billion bbl in place, exclusive operating authority, and a contract extending for 25 years with an extension option, Eni has secured a commanding role in one of Venezuela’s most consequential oil redevelopment projects.