Continental said it undertook an "independent evaluation of opportunities" in Venezuela after President Donald Trump called for the industry to invest.
Continental Resources on Wednesday signed a memorandum of understanding with Venezuela's state oil company to develop a massive crude patch in the South American nation.
Continental will develop and operate an area of the Orinoco Belt that spans 126,000 acres and possesses an estimated 30 billion barrels of reserves, the company said in a statement . The resource-rich Orinoco Belt contains most of Venezuela's 303 billion barrels of reserves.
Continental plans to advance the MOU into a long-term agreement with Petróleos de Venezuela S.A. in the coming weeks. Headquartered in Oklahoma City, Continental is one of the largest privately held oil and natural gas producers in the world.
The deal comes eight months after the U.S. ousted Venezuela's former President Nicolas Maduro in a military raid. President Donald Trump has called for U.S. oil companies to help develop Venezuela's massive reserves, but most of the publicly traded oil majors are hesitant.
Continental said it undertook an "independent evaluation of opportunities" in Venezuela after Trump called for American energy companies to invest in the country. Venezuela's reform of the law governing its oil industry helped Continental make decision to invest, the company said.
Continental founder Harold Hamm has been a Trump supporter and donor.
Dealmaking in Venezuela's oil patch has accelerated in recent weeks. President Donald Trump said last month that the U.S. had secured majority control over more than 65 billion barrels of Venezuela's crude reserves.
The Venezuelan government granted an obscure private oil company, North American Blue Energy Partners, concessions to develop those reserves. NABEP, in turn, has granted the U.S. government a 35% ownership stake along with a guaranteed supply of its crude oil.
And Chevron plans to more than double its production in Venezuela by 2031 through a $7 billion investment and its expansion into two additional oilfields.
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