Continental moves into Venezuelan heavy oil with large-scale Ayacucho 2 project
🛢 Continental Resources and PDVSA have signed an MOU to develop the Ayacucho 2 block in Venezuela’s Orinoco Belt. The agreement remains a preliminary step, with the two sides expected to move toward a formal development contract in the coming weeks.
📊 Continental estimates the block contains around 30 billion barrels of oil in place, but this does not represent recoverable reserves. The project still requires seismic work, exploration and infrastructure assessment before production can begin.
⏳ First oil could come as early as around 18 months after the necessary agreements and preparations are completed, while capital spending and production targets have not yet been disclosed.
🌍 For now, the deal is more significant as a signal of renewed investment in Venezuela’s oil sector than as a source of immediate new supply.
#OilMarket $CL
🛢 Continental Resources and PDVSA have signed an MOU to develop the Ayacucho 2 block in Venezuela’s Orinoco Belt. The agreement remains a preliminary step, with the two sides expected to move toward a formal development contract in the coming weeks.
📊 Continental estimates the block contains around 30 billion barrels of oil in place, but this does not represent recoverable reserves. The project still requires seismic work, exploration and infrastructure assessment before production can begin.
⏳ First oil could come as early as around 18 months after the necessary agreements and preparations are completed, while capital spending and production targets have not yet been disclosed.
🌍 For now, the deal is more significant as a signal of renewed investment in Venezuela’s oil sector than as a source of immediate new supply.
#OilMarket $CL
