Eni S.p.A. and state‑run PDVSA signed an agreement on April 28 2026 to relaunch the Junin‑5 heavy‑crude project in Venezuela’s Orinoco Belt. The deal gives Eni a 40 % stake in the project, with PDVSA holding the remaining 60 %. Junin‑5 is estimated to contain roughly 35 billion barrels of oil in place, making it a significant asset within the world’s largest heavy‑crude reserve field.
The relaunch fits into Eni’s long‑term strategy to sustain upstream growth while funding its 2050 carbon‑neutrality plan. Eni has operated in Venezuela since 1998, with interests in the Perla gas field and the PetroSucre joint venture. By generating cash flow from the heavy‑crude project, Eni can support investments in renewables, carbon capture, and other transition initiatives.
In Q1 2026, Eni reported adjusted EBIT down 4 % and net profit down 8 % versus the same period in 2025, missing both earnings‑per‑share and revenue forecasts. The miss was largely driven by refining weakness and foreign‑exchange hits, even as hydrocarbon production grew 9 % to 1.8 million barrels of oil equivalent per day. Management raised full‑year 2026 adjusted cash‑flow‑from‑operations guidance by 20 % to €13.8 billion and increased the share‑buyback program to €2.8 billion, signaling confidence in future cash generation.
The announcement did not trigger a significant immediate market reaction, but the Q1 2026 earnings miss dominated investor focus. The raised guidance and expanded buyback program were viewed as positive tailwinds that helped offset the earnings miss.
The investment comes amid easing U.S. sanctions on Venezuela, which could unlock new production. Heavy‑crude extraction in the Orinoco Belt requires specialized technology due to its high viscosity and sulfur content, but the long‑term nature of the asset aligns with Eni’s strategy to maintain a robust upstream portfolio.
The Junin‑5 relaunch represents a strategic bet on Venezuela’s heavy‑crude reserves, providing a cash‑generating asset that supports Eni’s broader transition strategy while reinforcing its upstream presence in one of the world’s most prolific oil regions.
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