The agreement, announced September 16, provides a framework for the parties to advance a long-term Contracto de Participación Productiva (CPP) in the coming weeks. If completed, Continental would operate Ayacucho with a 100% working interest, giving the Oklahoma City-based producer direct operational control over development of the block.

Ayacucho 2 lies north of the Orinoco River in Anzoátegui and forms part of the Orinoco Oil Belt, where Venezuela’s predominantly extra-heavy crude presents substantial technical and infrastructure requirements. Continental said it can bring private capital, technology, technical expertise and large-scale operating capability to the redevelopment of the asset and Venezuela’s wider oil industry.

The agreement also marks Continental’s first entry into Venezuela as the company expands its international portfolio beyond its established U.S. operations. Its international positions include Argentina’s Vaca Muerta shale formation and a joint platform targeting unconventional resources in Turkey’s Diyarbakir Basin. The company has described Ayacucho 2 as one of the most significant resource opportunities in its nearly 60-year history.

Continental said its evaluation of Venezuelan opportunities followed encouragement from the Trump Administration for American companies to support the rebuilding of Venezuela’s oil industry. The company also cited Venezuela’s revised hydrocarbon legal framework as providing a route to pursue the Ayacucho 2 opportunity. The MoU therefore comes amid a broader shift toward new continental structures and greater international participation in Venezuela’s upstream sector.

The agreement follows a series of developments involving international operators in Venezuela. Chevron announced a commitment of more than $7 billion over five years earlier in September to expand its Venezuelan operations, while other international companies are assessing opportunities across the Orinoco Belt and the country’s offshore gas sector. Continental’s proposed entry adds another U.S. producer to that expanding group.

The scale of Ayacucho 2 also places the agreement within Venezuela’s broader effort to convert its enormous hydrocarbon resource base into higher production. Continental’s proposed role would combine a large undeveloped resource position with an operator experienced in unconventional development, although the CPP still needs to be finalized before the proposed working interest and operatorship take effect.

That investment momentum will form part of the backdrop of Venezuela Energy Week 2027, taking place February 22–25 in Caracas. Organized in partnership with Venezuela’s Ministry of Hydrocarbons and PDVSA, the event will bring together government officials, national oil companies, international investors, operators, service companies and financiers to examine opportunities across upstream development, gas, refining, infrastructure and energy financing.

Illustrating the type of large-scale opportunity now entering the investment pipeline, Ayacucho 2 boasts substantial resource potential, international operating expertise and a contractual framework designed to attract private capital. As Venezuela Energy Week approaches, the progress of Continental’s CPP with PDVSA is expected to provide another indication of how quickly recently announced opportunities can move toward development and production.

Supporting Venezuela’s Earthquake Recovery

Our thoughts are with the people and communities affected by the recent earthquakes in Venezuela. As the country begins the long process of recovery, we encourage members of the global energy community to support relief and reconstruction efforts through the CAF Recovery and Reconstruction Fund for Venezuela, which channels contributions from individuals, companies and organizations to emergency assistance, essential services and long-term rebuilding efforts.

To learn more or make a contribution, please visit the CAF Recovery and Reconstruction Fund for Venezuela.