Eni accelerates Junín 5 oil plans in Venezuela

Eni is advancing a major heavy oil development in Venezuela’s Junín 5 field and aims to approve the first phase of the project by the end of 2026. Executives said a final investment decision on Phase 1 could be taken before year-end, following submission of a development plan to authorities in Caracas. The project is designed as a phased development that is expected to eventually reach up to 1 million barrels per day of production in the early 2030s.

Eni says Junín 5, located in Venezuela’s Orinoco Belt, contains 35 billion barrels of oil in place.

For the first development phase, Eni plans to lift output at Junín 5 to about 200,000 barrels per day within 18–24 months after the final investment decision. Management reiterated this 18–24 month ramp-up timeframe on its third-quarter earnings call, noting that the company intends to move quickly once approvals are granted. Further phases are expected to progressively expand capacity toward a full-field level of 1 million barrels per day over the coming decade.

Executives described Junín 5 as a phased project that will initially rely on existing facilities with spare capacity, with new infrastructure to be added as production grows. They also indicated that capital requirements are still being assessed, reflecting the large scale of the development. The first phase is positioned as a key step that establishes higher production while setting the foundation for subsequent expansions.

Eni identifies Venezuela as a strategic priority within its upstream portfolio. Agreements to develop the Junín 5 oil field and expand the Perla gas field together unlock an estimated 5.5 billion barrels of oil equivalent in recoverable resources. Management highlighted that arrangements with PDVSA provide for prompt payment of current gas production and create conditions for repayment of overdue commercial receivables through future export volumes.

Beyond oil, Eni is awaiting approval of a development plan for the Perla gas field, held through the Cardón IV joint venture with a 50% stake alongside Repsol. The first phase of the Perla expansion is expected to add 90 million standard cubic feet of gas per day to Venezuela’s domestic market. A second phase would support exports via a floating LNG facility with annual capacity of about 3.4 million to 3.5 million metric tonnes.

The Venezuelan projects sit within a broader expansion and capital allocation strategy outlined with Eni’s third-quarter results. The exploration and production segment reported what management termed outstanding exploration success, adding over 1.2 billion barrels of oil equivalent in resources with an 80% technical and 70% commercial success rate. Management said discovery costs were below $1 per barrel, underscoring the company’s focus on cost-efficient resource growth.

Strong cash generation underpins these upstream investments alongside shareholder distributions. Eni reported record cash flow supporting a €3.8 billion share buyback program. In parallel, transition businesses such as Enilive have performed strongly, with full-year EBITDA guidance raised to €1.4 billion and biorefining capacity expected to reach 2.1 million tonnes per year by year-end, with an additional 1.5 million tonnes under construction.