Continental Resources strikes Venezuela oil development deal

• The Ayacucho 2 Block contains an estimated 30 billion barrels of oil and is located in Venezuela's Anzoategui state, representing one of Continental's most significant resource opportunities in its nearly 60-year history
• Venezuela holds the world's largest proven crude oil reserves at 303 billion barrels (17% of global reserves), but production has declined since 2013 due to lack of international investment, technical expertise, and sanctions
• Continental will bring capital, technology, and large-scale operating capabilities to help revitalize Venezuela's oil industry, with plans to evaluate additional opportunities in the country

Summary

Continental Resources has signed a memorandum of understanding with Venezuela's state-owned Petroleos de Venezuela S.A. (PDVSA) to develop oil resources in the country's Orinoco Belt.

Key Facts:

• Asset Details: Continental will operate the Ayacucho 2 Block with 100% interest once a long-term production agreement is finalized in coming weeks
• Location: The block covers approximately 126,000 acres in Anzoategui state, north of the Orinoco River
• Resources: Estimated 30 billion barrels of oil in the tract

Strategic Context:

Continental CEO Doug Lawler described Ayacucho 2 as "one of the most significant resource opportunities in Continental's nearly 60-year history." The company was motivated by Trump administration calls for U.S. energy companies to help rebuild Venezuela's oil industry, combined with recent changes to Venezuela's legal framework for hydrocarbons.

Continental plans to bring capital, technology, and large-scale operating expertise to the effort while evaluating additional opportunities in Venezuela and globally.

Market Background:

According to the U.S. Energy Information Administration (EIA), Venezuela holds the world's largest proven crude oil reserves at approximately 303 billion barrels (17% of global reserves as of 2023). However, production has declined significantly since 2013 due to international sanctions, limited foreign investment, budget constraints at PDVSA, and lack of technical expertise.

The Orinoco Belt contains primarily extra-heavy crude oil requiring specialized extraction capabilities that international oil companies possess, making Continental's involvement strategically significant for Venezuela's energy sector revitalization.