US firm Heeney Capital to operate Venezuela gold mine, Continental seeks to enter oil project
HOUSTON - Venezuelan authorities signed deals on Wednesday granting New York-headquartered investment firm Heeney Capital operational and export rights for a gold mine, and setting preliminary terms for US producer Continental Resources to seek business opportunities in a large oil area.
Washington is encouraging US investments in the OPEC country after capturing then-President Nicolas Maduro in January. Energy and mining have been prioritized to receive fresh capital for projects aimed at reanimating output and exports of commodities from gold to crude, with emphasis on shipments to the US.
Heeney is partnering with commodities trader Mercuria Energy for the 30-year gold deal, a spokesperson for Heeney said, adding that initial investment in the Choco mine is estimated to be up to $1-billion. The mine, an important gold deposit, is part of an industrial complex in El Callao, in Venezuela's southern Bolivar state.
The deal was signed with Venezuelan authorities in Houston on the sidelines of the G20 energy conference. A similar agreement earlier this year granted another commodity firm, Trafigura, access to Venezuelan gold as well.
Executives from Continental, founded by billionaire Harold Hamm, signed a memorandum of understanding with Venezuela's State oil company PDVSA seeking to further operate and develop the Ayacucho 2 area in the prolific Orinoco Belt, the country's largest output region.
The preliminary agreement is expected to lead to a production-sharing contract in the coming weeks, the firm said in a release.
"Our team likes challenges," Hamm said during 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."
The company's CEO, Doug Lawler, said Continental is evaluating possible partnerships for the greenfield project, which will initially require significant seismic studies and exploration. Continental plans to retain 100% working interest, he added.
First output by Continental in Ayacucho 2 could start in as little as 18 months, Lawler said. The block has an estimated 30 billion barrels of resources in place.
Foreign oil producers in Venezuela have been migrating to joint ventures and production-sharing contracts as part of a sweeping energy reform, while new entrants — mostly US-based firms — are committing to development projects in the South American country encouraged by a Washington-supported $100-billion reconstruction plan for the industry.
Continental was among a group of companies reported to have held talks with the administration of US President Donald Trump about possible investments in Venezuela 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. Hamm also served as a prominent fundraiser for Trump among oil and gas executives, helping the Republican raise money from an industry that has a close relationship with the administration.
He has also played an informal role as energy adviser to Trump.
Earlier in the day, Florida-headquartered Denarius Holding Group, whose main shareholder is Türkiye's energy firm Can2 Termik, said it had reached a 20-year agreement to operate an oil project in Venezuela.
