Harold Hamm, an oil executive closely affiliated with former President Donald Trump, announced on Wednesday that his company, Continental Resources, has signed a preliminary agreement to explore and develop oil reserves in Venezuela. The deal involves Venezuela’s state-owned oil company, Petróleos de Venezuela, and covers the Ayacucho 2 Block, a 126,000-acre area within the Orinoco Belt, a region known for its heavy crude oil deposits.
The announcement was made during a Group of 20 energy ministers meeting hosted by the United States in Houston. It follows similar moves by Chevron, a larger U.S. oil producer already active in Venezuela, which recently committed to more than doubling its production in the country over the next five years.
The agreement with Continental Resources marks the company’s tentative entry into Venezuela, a country with some of the world’s largest oil reserves but a petroleum sector weakened by years of economic mismanagement, corruption, underinvestment, and ongoing U.S. sanctions. Continental Resources, headquartered in Oklahoma City, has traditionally focused on domestic shale oil and gas production, successfully benefiting from technological advances in hydraulic fracturing. In recent years, however, it has sought international opportunities, striking deals in Turkey and Argentina.
Harold Hamm described the Venezuelan opportunity as significant and emphasized Continental’s capability to manage the challenges posed by the country’s heavy crude. The company has limited experience with such oil types domestically but views these obstacles as manageable. Continental CEO Doug Lawler said drilling and production activities could begin approximately six months after finalizing a formal contract, although the timeline remains uncertain given the complexities of developing a new site without detailed seismic or drilling data.
Experts have expressed skepticism about the speed and ease with which foreign companies can tap into Venezuela’s vast oil reserves, citing technical difficulties and political risks. Nonetheless, Hamm expressed confidence that future Venezuelan governments would honor oil agreements, stressing that continued cooperation would be in the country’s best interest.
The announcement attracted attention from U.S. government officials, including Energy Secretary Chris Wright and Interior Secretary Doug Burgum, as well as senior Venezuelan representatives. The Trump administration has encouraged American energy firms to invest in Venezuela following the capture of Venezuelan leader Nicolás Maduro by U.S. forces earlier this year, a move that sought to open the country’s oil sector to foreign producers.
Continental Resources has not disclosed the financial scale of its planned investment or production targets. The company emphasized the significant capital that would be required to develop wells and infrastructure in this new venture, underscoring both the potential opportunities and uncertainties inherent in operating within Venezuela’s complex political and economic environment.