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Continental Resources Secures Deal to Develop Ayacucho 2 Block in Venezuela
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Core Deal Overview
Continental Resources announced a memorandum of understanding with Petróleos de Venezuela S.A. (PDVSA) to develop and operate the Ayacucho 2 Block in the Orinoco Belt. The tract covers roughly 126,000 acres in Anzoátegui state and is estimated to contain about 30 billion barrels of oil. Under the agreement, Continental will hold a 100 % working interest once a long-term production contract is signed in the coming weeks. The announcement was made at a G-20 energy ministers gathering hosted by the United States.
Background & Context
President Donald Trump has urged U.S. energy firms to help rebuild Venezuela’s oil sector since U.S. forces captured President Nicolás Maduro in January. The call follows Chevron’s September commitment of more than $7 billion to double its Orinoco Belt output to roughly 600,000 bpd. Venezuela holds the world’s largest proven crude reserves—about 303 billion barrels, according to the U.S. Energy Information Administration (EIA)—but produced only 0.8 % of global crude in 2023, a 70 % decline from 2013. Extracting the extra-heavy crude of the Orinoco Belt requires technical expertise that many international oil companies possess but have been limited by U.S. sanctions.
Data & Statistics
- Ayacucho 2 Block: 126,000 acres; ~30 billion barrels of reserves.
- Orinoco Belt: Holds the majority of Venezuela’s 303 billion-barrel reserve base.
- Venezuelan Production (2023): 742,000 bpd, 0.8 % of global output, down 70 % from 2013.
Official Statements & Responses
Continental Resources framed the deal as a catalyst for both Venezuelan and global energy markets. “Ayacucho 2 is an extraordinary addition to our portfolio and will contribute significantly to Continental's growth trajectory,” said CEO Doug. Founder and chairman emeritus Harold Hamm added, “Continental was built to recognize great resource opportunities and have the conviction to pursue them.” Venezuelan Vice President Delcy Rodríguez said the deal could generate more than $200 billion, while Secretary of State Marco Rubio projected near-term private investment of nearly $100 billion.
Conflicting Reports & Gaps
All cited sources present consistent estimates for the size of the Ayacucho 2 Block and the broader reserve figures for the Orinoco Belt. No substantive discrepancies or missing data were identified.
What’s Next
Continental expects to finalize a long-term “Contrato de Participación Productiva” with PDVSA within the next few weeks. The company also indicated it will evaluate additional oil opportunities in Venezuela and elsewhere, expanding its international portfolio beyond its U.S. base.
Verbatim Quotes
- “We are excited to participate in the revitalization of Venezuela's energy industry, bringing further economic strength to Venezuela and its people as well as global energy markets. Ayacucho 2 is an extraordinary addition to our portfolio and will contribute significantly to Continental's growth trajectory,” — Continental Resources CEO Doug
- “Continental was built to recognize great resource opportunities and have the conviction to pursue them,” — Harold Hamm, continental founder
- “What this company is doing today builds on that foundation while taking Continental to an entirely new level. I could not be more proud of the company, our people and the future we are building.” — Continental, founder and chairman