Continental Resources signed a memorandum of understanding on September 16, 2026, to develop the 126,000-acre Ayacucho 2 Block in Venezuela’s Orinoco Belt. The deal follows a U.S. push to revive the South American oil sector and positions the Oklahoma City producer alongside Chevron in the region.
Billionaire shale pioneer Harold Hamm’s private oil firm is making a direct bet on Venezuela’s massive crude reserves.
Continental Resources Secures Ayacucho 2 Block in the Orinoco Belt
The newly inked memorandum of understanding covers the 126,000-acre Ayacucho 2 Block, an acreage estimated to hold roughly 30 billion barrels of crude. Continental plans to transition the preliminary MOU into a long-term agreement with Venezuela’s state-owned petroleum company in the coming weeks. The Orinoco Belt itself contains the vast majority of Venezuela’s total 303 billion barrels of reserves.
Political Ties and the Push by Washington
The deal arrives as the administration of U.S. President Donald Trump actively encourages domestic energy companies to invest in Venezuela and help restore daily output to the 3 million-barrel-a-day mark—a threshold the nation has not reached in roughly 15 years, Bloomberg reported.
While most publicly traded oil majors remain hesitant to commit capital to the region due to historical nationalization concerns and contract sanctity risks, Continental moved forward. The company undertook an independent evaluation of opportunities after Trump called for American participation, noting that Venezuela’s recent reform of its oil industry law heavily influenced the decision to invest. Furthermore, founder Harold Hamm has maintained close political ties as a prominent Trump supporter and donor, having contributed more than $1 million to the Make America Great Again political action committee between 2023 and 2024.
Broader Dealmaking Accelerates Across Caracas
Continental’s agreement is part of a rapidly accelerating wave of energy transactions in Venezuela. Recent weeks have seen a slate of deals finalized at a signing ceremony in Caracas involving acting President Delcy Rodríguez. Energy player Chevron is already moving forward with plans to more than double its local production by 2031 through a $7 billion investment and expansion into two additional oilfields. Additional agreements involve companies such as GE Vernova Inc., Eni SpA, Geopark Limited, and privately held Aspect Holdings.
Meanwhile, the U.S. government negotiated a 35% ownership stake and a guaranteed crude supply in North American Blue Energy Partners, a private firm granted concessions across 17 Venezuelan oil fields.
Financial Realities and Industry Skepticism
Despite the flurry of activity, market analysts remain watchful regarding long-term viability. Dan Pickering, chief investment officer at Pickering Energy Partners, noted at a Houston conference that restoring Venezuela’s output will demand massive injections of foreign cash, leaving it uncertain whether overseas drillers can successfully navigate the operational landscape over the long haul. Contract sanctity questions persist as companies weigh the risk of future state interventions against the immense potential of the Orinoco reserves.
