Continental Resources Venezuela Deal Signals Orinoco Push

Continental Resources, Inc. advanced its Venezuela deal on Sept. 16, 2026, announcing it had signed a memorandum of understanding (MOU) with Petróleos de Venezuela, S.A. (PDVSA) to operate and develop the Ayacucho 2 Block. The company framed the move as bringing private capital to Venezuela amid recent changes in U.S. sanctions licensing.

Deal Terms, Asset Size, and Strategic Expansion

The Ayacucho 2 Block lies in Venezuela’s Orinoco Oil Belt north of the Orinoco River in Anzoátegui state, covering about 126,000 acres. Continental said the block contains an estimated 30 billion barrels of resource in place, roughly 10% of Venezuela’s reported 303 billion barrels of oil reserves, underscoring the Orinoco Belt’s scale as a heavy-oil region.

Continental described the MOU as an initial framework to be converted into a long-term Contrato de Participación Productiva (CPP) in the coming weeks. Upon execution, the company would operate the block and hold a 100% working interest, with PDVSA remaining the state counterparty.

Based in Oklahoma City, Continental positioned the project as a strategic expansion beyond its U.S. shale base. The company said it would bring significant private capital, proprietary technology, and technical expertise to redevelop Venezuela’s heavy-oil assets. It called the Orinoco “one of the world’s most prolific oil-producing regions.” Venezuelan officials publicly welcomed the MOU, highlighting its role in developing technical and financial capabilities for the Ayacucho 2 Block.

Sanctions and Regulatory Framework

The announcement follows the U.S. Treasury’s Office of Foreign Assets Control (OFAC) issuing General License 52C on Sept. 15, 2026, which replaced the prior version 52B. The license permits blocked individuals to sign and execute contracts only when acting in their official capacity for PDVSA. At the same time, it prohibits transactions that would alter governance at PDV Holding, Citgo Holding, or CITGO Petroleum, including appointing or removing directors.

This licensing update authorizes specific PDVSA-related transactions but does not represent a general easing of Venezuela sanctions. It creates a narrow legal channel for deals like Continental’s MOU while tightening governance restrictions around Citgo.

Continental described the agreement as a strategic entry into one of the world’s largest undeveloped heavy-oil provinces. Moving from the MOU to a binding CPP and full operatorship will require navigating the license terms and any further Treasury authorizations. The project must remain within the limited scope of authorized transactions under General License 52C.