Continental Resources Inc. has signed a memorandum of understanding with Venezuela’s state oil company, Petróleos de Venezuela S.A. (PDVSA), to develop the Ayacucho 2 Block in the Orinoco Belt. The agreement covers 126,000 acres with an estimated 30 billion barrels of crude reserves, according to a company statement released on September 16, 2026.
The Oklahoma City-based oil producer will operate and develop the block, advancing the memorandum into a long-term agreement within weeks. The Orinoco Belt, which contains most of Venezuela’s 303 billion barrels of reserves, has been a focal point for international energy investment following political changes in the country.
U.S. Political and Industry Response
The deal follows the U.S. ousting of former Venezuelan President Nicolás Maduro in a military raid eight months prior, a move that opened the door for U.S. companies to engage with Venezuela’s oil sector. President Donald Trump has publicly encouraged U.S. oil firms to revive Venezuela’s production, which has declined significantly in recent years. However, major publicly traded oil companies have hesitated due to concerns over contract stability and Venezuela’s history of resource nationalization.
Continental Resources, led by billionaire Harold Hamm, has been among the first U.S. firms to move forward. Hamm, a prominent donor to Trump, has long advocated for expanded U.S. energy production and has been credited with pioneering horizontal drilling techniques that boosted U.S. shale output.
Broader Investment Push in Venezuela
The agreement is part of a broader slate of deals announced in recent weeks, including commitments from Chevron Corp., GE Vernova Inc., Eni SpA, Geopark Limited, and Aspect Holdings. Acting Venezuelan President Delcy Rodríguez attended a signing ceremony in Caracas alongside company executives.
Analysts estimate these investments could total tens of billions of dollars, with the potential to significantly increase Venezuela’s oil output. However, some industry observers have questioned the durability of these agreements, citing Venezuela’s past practice of nationalizing foreign assets and concerns about enforceable contracts.
Challenges and Long-Term Outlook
Restoring Venezuela’s oil production to 3 million barrels per day—a level last seen roughly 15 years ago—will require substantial foreign capital and sustained political stability. The country’s oil sector has struggled under years of underinvestment, sanctions, and economic turmoil.
Continental Resources’ involvement marks a notable step in U.S.-Venezuela energy cooperation, but the success of the project will depend on factors beyond the initial agreement, including geopolitical dynamics, regulatory frameworks, and global oil market conditions.