Venezuela Signs Gold Mine Deal With Heeney, Oil MOU With Continental

Venezuelan authorities signed agreements in Houston on Wednesday granting a New York-based investment firm operational and export rights for a gold mine, and setting preliminary terms for a US oil producer to pursue opportunities in a major crude area.

The deals reflect Washington's push to encourage American investment in the OPEC nation after the capture of then-President Nicolas Maduro in January. Energy and mining have been prioritised for fresh capital aimed at reviving output and exports of commodities from gold to crude, with an emphasis on shipments to the United States.

Heeney Capital is partnering with commodities trader Mercuria Energy for the 30-year gold deal, a company spokesperson said. Initial investment in the Choco mine is estimated at up to $1 billion. The deposit forms part of an industrial complex in El Callao, in the southern state of Bolivar.

The agreement was signed on the sidelines of the G20 energy conference. A similar arrangement earlier this year gave another commodity firm, Trafigura, access to Venezuelan gold.

Executives from Continental Resources, founded by billionaire Harold Hamm, signed a memorandum of understanding with state oil company PDVSA to further operate and develop the Ayacucho 2 area in the Orinoco Belt, the country's largest producing region. The company said the preliminary agreement is expected to lead to a production-sharing contract in the coming weeks.

"Our team likes challenges," Hamm said at a press conference. "When you consider what's there in the source rock and the tremendous potential, it's worth all the effort that our expertise can bring. We know this is a great opportunity."

Chief executive Doug Lawler said Continental is evaluating possible partnerships for the greenfield project, which will initially require significant seismic studies and exploration. The company plans to retain 100% working interest, he added. First output could begin in as little as 18 months, with the block holding an estimated 30 billion barrels of resources in place.

Foreign oil producers in Venezuela have been shifting toward joint ventures and production-sharing contracts under a sweeping energy reform, while new entrants — mostly US-based firms — are committing to development projects, encouraged by a Washington-supported $100 billion reconstruction plan for the industry. Continental was among companies reported to have held talks with the administration of US President Donald Trump about possible investments earlier this year.

Hamm has been a major financial backer of Trump, giving more than $2 million to Trump-aligned campaign committees during the 2024 election cycle, and served as a prominent fundraiser among oil and gas executives. He has also played an informal role as an energy adviser to Trump.

Earlier on Wednesday, Florida-headquartered Denarius Holding Group, whose main shareholder is Turkey's energy firm Can2 Termik, said it had reached a 20-year agreement to operate an oil project in Venezuela.