Chevron Corp. and Shell are approaching finalization of their first major oil production agreements in Venezuela since the United States modified its sanctions approach toward the South American nation, according to industry sources familiar with the negotiations.

The potential deals would mark a significant development in Venezuela's energy sector, which has been heavily constrained by international sanctions in recent years. Both companies have been exploring opportunities to resume or expand operations in the country, which holds some of the world's largest proven oil reserves.

Venezuela's oil industry has faced substantial challenges due to a combination of international sanctions, infrastructure deterioration, and economic instability. The country's oil production has declined dramatically from peak levels reached in earlier decades, severely impacting the nation's economy and government revenues.

The timing of these negotiations coincides with evolving US policy toward Venezuela and ongoing discussions about sanctions relief. The Biden administration has previously indicated willingness to adjust sanctions in response to political developments and negotiations involving the Venezuelan government.

Neither Chevron nor Shell immediately responded to requests for comment regarding the reported negotiations. Venezuelan government officials have not publicly confirmed details about the specific agreements under discussion.

The potential deals could signal a broader shift in international engagement with Venezuela's energy sector, though any final agreements would need to comply with existing regulatory frameworks and sanctions requirements.