Junín 5 Field Holds 35 Billion Barrels as Eni Takes Sole Operator Role
Key Facts
Eni submitted a development plan for the Junín 5 field to authorities in Caracas and could take a final investment decision on the first phase before the end of 2026, Reuters reported. This follows the company and Venezuelan oil company PDVSA signing a production-sharing contract on September 2, 2026. The agreement makes Eni the field’s sole operator, responsible for its technical, financial and commercial management. The project gives the company an opportunity to expand its oil business in Venezuela, but remains subject to approvals and an investment decision. Junín 5 is a heavy-oil project in the Orinoco Belt, part of broader agreements Eni has signed with PDVSA.
The production-sharing contract runs for 25 years, with the possibility of an extension, according to an Eni statement. The agreement moves the project from the Petrojunín joint-venture model to a new contractual production-sharing framework. Under the contract, Eni assumes technical, financial and commercial responsibility and becomes the field’s sole operator. This framework gives the company a direct execution role in developing the project, with the necessary approvals and final investment decision required before the first phase begins. Eni announced the contract signing in September, before disclosing in October that its development plan had been submitted to authorities in Caracas.
Junín 5 holds 35 billion barrels of oil in place, and was producing about 12,000 barrels per day when the contract was announced, according to Eni. That places the field among the major oil assets the company is seeking to develop in Venezuela. But the volume of oil in place does not mean all of it can be extracted or that new production has already been achieved. The project’s progress depends on approval of the development plan and then an investment decision on the first phase. Reuters reported that Eni could make that decision before the end of 2026, setting the next step in the field’s development.
Eni links the Junín 5 project to its existing presence in Venezuela, where its hydrocarbon production reached 64,000 barrels of oil equivalent per day in 2025, mostly from the Perla gas field. In October, the company said its agreements with PDVSA include reviving Junín 5 under revised contractual terms, alongside gas exports from Perla. The agreements provide access to about 5.5 billion barrels of oil equivalent in recoverable resources, according to an Eni statement. That scope extends beyond the field project alone, combining heavy-oil development with gas exports. Eni said the agreements strengthen options for future growth in its exploration and production activities.
The heavy-oil development plan also requires logistics and supply-chain services to be put in place, the company’s chief operating officer said on an earnings call. Building those arrangements “will take some time,” he added. Management linked the operating requirements for heavy oil to the possibility of using condensates and lighter oil, according to the call transcript published by The Motley Fool. These requirements add an operational dimension to the approvals and investment decision that must precede the first phase. The field’s development therefore remains a gradual process that depends on completing the preparations as well as the contractual framework.
The project comes as Eni’s exploration and production activities grew in the third quarter of 2026. Underlying production reached 1.83 million barrels of oil equivalent per day, up 7% year on year and 2% from the previous quarter, according to the company’s results. Eni also raised its forecast for underlying oil and gas production growth for the year to a range of 6%–7%. Chief Executive Claudio Descalzi said quarterly growth reflected “the acceleration of new projects and the full operation of our assets.” On financing, adjusted cash flow from operations before working capital was 4.29 billion euros for the quarter, funding organic capital expenditure of 1.3 billion euros. The company forecast adjusted cash flow from operations of 16.5 billion euros in 2026, while keeping gross capital expenditure at 7 billion euros and projecting net expenditure of less than 4.5 billion euros.