Chevron and Shell Closing in on Venezuela Oil

International oil majors Chevron and Shell are closing in on the first big oil production deals with Venezuela since the U.S. capture of President Nicolas Maduro in January, five sources close to the negotiations told Reuters.

The deals would allow both companies to boost production in coveted oil regions in the South American country, the biggest steps to date toward what U.S. President Donald Trump has said would be a $100 billion effort to rebuild Venezuela's oil industry after decades of mismanagement and underinvestment under Maduro and his predecessor Hugo Chavez.

Venezuela's National Assembly in late January approved a sweeping reform of the country's main oil law. It now grants foreign companies autonomy to operate, export and sell Venezuelan oil even when they are minority partners of state-owned oil company PDVSA.

Chevron and Venezuela's energy authorities have agreed on preliminary terms to expand Chevron's largest oil project, Petropiar, in the vast Orinoco Belt, two of the sources said.

Venezuela's oil ministry, PDVSA and Chevron did not reply to requests for comment.

The deal would give Chevron the rights to produce from the Ayacucho 8 area located south of the Petropiar project area, the two sources added, a large block with proven